Coffee Market Report
The Indonesian government trade data from Sumatra, which is the leading coffee producing island within Indonesia, has reported that the islands robusta coffee exports for the month of May were 13,460 bags or 9.20% lower than the same month last year, at a total of 132,770 bags. This contributes to the islands cumulative robusta coffee exports for the first eight months of the present October 2019 to September 2020 coffee year to be 359,143 bags or 22.73% higher than the same period in the previous coffee year, at a total of 1,938,868 bags.
The National Coffee Institute of Honduras have reported that the country’s coffee exports for the month of May were 20.90% lower than the same month last year, at a total of 729,958 bags. This they say has contributed to the cumulative coffee exports for the first eight months of the present October 2019 to September 2020 coffee year to be 8.50% lower than the same period in the previous coffee year, at a total of 4,273,594 bags.
The National Coffee Institute of Costa Rica have reported that the country’s coffee exports for the month of May were 13% lower than the same month last year, at a total of 143,781 bags. This they say has contributed to the cumulative coffee exports for the first eight months of the present October 2019 to September 2020 coffee year to be 3.5% lower than the same period in the previous coffee year, at a total of 697,307 bags.
The July to July contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 44.72 usc/Lb. This equates to 45.54% price discount for the London Robusta coffee market.
The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 160 bags yesterday; to register these stocks at 1,759,806 bags, with 91.1% of these certified stocks being held in Europe at a total of 1,602,694 bags and the remaining 8.9% being held in the USA at a total of 157,112. There was a larger in number 5,235 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 13,492 bags.
The commodity markets were slightly firmer in trade yesterday, to see the overall macro commodity index taking a sideways track for the day. The Sugar, and London Robusta Coffee markets ended the day on a positive note, while the Cocoa and New York Arabica Coffee markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.0696% higher; to see this index registered at 359.7022. The day starts with the U.S. Dollar steady, trading at 1.250 to Sterling, at 1.113 to the Euro and with the US Dollar buying 5.367 Brazilian Real.
The London and New York markets started the yesterday trading on modest positive note, both markets continued on a positive track into the early afternoon trade buoyed by buying support. As the afternoon progressed both the New York and the London markets started to attract selling pressure to limit the gains from the morning and set the markets on a soft track into the afternoon trade. The New York and London markets bounced back off the lows of the day to see the London market settle on a positive note and the New York market settle on a modest close to par negative note.
The London market ended the day on a positive note and with 76.92% of the earlier gains of the day intact, while the New York market ended the day on a negative note 10.53% of the earlier losses of the day intact. This mixed close does little to indicate direction, albeit that the New York market recovered late in the day limit the losses for the days trade, one might expect the markets are for a hesitant steady start to early trade today, against the prices set yesterday, as follows:
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
JUL 1179 + 20 JUL 98.20 – 0.10
SEP 1198 + 20 SEP 99.75 – 0.25
NOV 1217 + 20 DEC 102.10 – 0.15
JAN 1236 + 19 MAR 104.40 – 0.05
MAR 1254 + 17 MAY 105.95 – 0.05
MAY 1274 + 14 JUL 107.45 Unch
JUL 1295 + 12 SEP 108.80 + 0.10
SEP 1311 + 10 DEC 110.50 + 0.20
