Coffee Market Report
| The coffee markets remain devoid of fundamental supportive news yesterday, with the markets dominated by negative sentiment, which comes with the perception of significant stocks and continued good supply. This perception tending to keep the speculative sector of the market short sold, while the commercial industries and with many players still enjoying their summer holidays, are somewhat sidelined from the market.
The November to December contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 40.06 usc/Lb. This equates to 39.94% price discount for the London Robusta coffee market. The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 4,630 bags yesterday; to register these stocks at 2,357,463 bags. There was meanwhile a larger in number 13,712 bags change to the number of bags pending grading for this exchange; to register these pending grading stocks at 27,084 bags. The commodity markets were mixed in trade yesterday, with the overall macro commodity index taking something of a sideways track for the day. The Cotton, Copper, Wheat, Corn, Soybean, Gold and Silver markets ended the day on a positive note, while the Oil, Natural Gas, Sugar, Cocoa, Coffee and Orange Juice markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.12% lower; to see this index registered at 382.51. The day starts with the U.S. Dollar steady and trading at 1.216 to Sterling, at 1.121 to the Euro and with the US Dollar buying 3.968 Brazilian Real. The London market started the day yesterday trading near to par, while the New York market started the day on a modest negative note and soon joined by the London market, to see both markets taking a modest negative track into the early afternoon trade. As the afternoon progressed both markets remained mostly near to par, but to see the markets remain on a softer track for the day. The London market ended the day on a negative note and with 60% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note and with 27.3% of the earlier losses of the day intact. This soft and lacklustre close does little to inspire confidence and one would expect little better than a steady start due for early trade today, against the prices set yesterday, as follows: LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb. SEP 1302 – 5 SEP 96.90 – 0.15 |
