Coffee Market Report
| The latest Commitment of Traders report from the New York arabica coffee market has seen the shorter term in nature Managed Money fund sector of this market increase their net short sold position within the market by 28.02% over the week of trade leading up to Tuesday 6th. August; to register a new net short sold position of 33,699 Lots. Meanwhile the longer term in nature Index Fund sector of this market decreased their net long position within the market by 1.61%, to register a net long position of 42,219 Lots on the day.
Over the same week, the Non-Commercial Speculative sector of this market increased their net short sold position within this market by 12.32%; to register a new net short sold position of 36,583 Lots. This net short-sold position which is the equivalent of 10,371,118 bags has most likely been further increased, following the period of mixed but overall softer trade that has since followed and likewise, that of the Managed Money Fund sector of the market. The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Managed Money Sector of this market increased their net short sold position within the market by 19.66% over the week of trade leading up to Tuesday 6th. August; to register a short-sold position of 43,814 Lots. This net short sold position which is the equivalent of 7,302,333 bags has most likely been further increased, following the period of mixed but overall negative trade that has since followed. The Vietnam customs authorities have reported that the country exported 2,340,700 bags of coffee during the month of July, which was 1.4% lower than the previous month. While they say that this contributes to the cumulative coffee exports for the first seven months of this year being 9.6% lower than the same period last year, at a total of 17,658,000 bags. The Vietnam customs authorities have noted within the report that due to the soft reference prices of the coffee terminal markets this year, that the value of the coffee exports for the first seven months of this year 19.8% lower than the same period last year, at a total of 1.81 billion US dollars. This well illustrating the value problem that global coffee producers are presently encountering. The November to December contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 38.51 usc/Lb. This equates to 39.58% 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 4,853 bags yesterday; to register these stocks at 2,362,191 bags. There was meanwhile an increase by 3,585 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 25,103 bags. The commodity markets took a tumble yesterday, to see the overall macro commodity index taking a relatively sharp downside track for the day. The Cocoa, Gold and Silver markets ended the day on a modest positive note while the Oil, Natural Gas, Sugar, Coffee, Cotton, Copper, Orange Juice, Wheat, Corn and Soybean markets ended the day on a negative note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 1.5062 lower; to see this index registered at 381.30. The day starts with the U.S. Dollar steady and trading at 1.207 to Sterling, at 1.119 to the Euro and with the US Dollar buying 3.985 Brazilian Real. The London market started the day yesterday trading on a modest positive note close to par, where it remained into early afternoon trade, while the New York market started the day trading on a softer note, before dipping into more negative territory into the early afternoon trade. As the afternoon progressed and with negative influences of both the soft nature of the overall macro commodity index and a weaker Brazil Real, both markets encountered increased selling pressure and with sell stops being triggered to accentuate losses, both markets fell into negative territory towards to the end of the day. The London market ended the day on a negative note and with 89.3% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note and with 89.5% of the earlier losses of the day intact. This softer close for the markets is unlikely to inspire confidence and one would expect the markets are only due for a near to steady start to early trade today, against the prices set yesterday, as follows: LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb. SEP 1270 – 26 SEP 93.75 – 3.55 |
