Coffee Market Report
The National Coffee Institute of Honduras have reported that the country’s coffee exports for the month of June were 29.60% lower than the same month last year, at a total of 651,746 bags. This they say has contributed to the cumulative coffee exports for the first nine months of the present October 2019 to September 2020 coffee year to be 12.02% lower than the same period in the previous coffee year, at a total of 4,925,341 bags.
The National Coffee Institute of Costa Rica have reported that the country’s coffee exports for the month of June were 5.60% higher than the same month last year, at a total of 144,389 bags. This they say has contributed to the cumulative coffee exports for the first nine months of the present October 2019 to September 2020 coffee year to be 2% lower than the same period in the previous coffee year, at a total of 841,697 bags.
The New York Arabica Coffee Market has trended positive for the fourth consecutive session, amid reports of colder weather due to a wet cold front forecast to hit some areas of the Brazil Coffee Belt this week.
The September to September contract arbitrage between the London and New York markets widened yesterday; to register this at 49.39 usc/Lb. This equates to 47.49% 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 1,152 bags yesterday; to register these stocks at 1,653,782 bags, with 92.9% of these certified stocks being held in Europe at a total of 1,536,133 bags and the remaining 7.1% being held in the USA at a total of 117,649 bags. There was meanwhile a larger in number 4,386 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 24,952 bags.
The Certified Robusta coffee stocks held against the London exchange have been reported to decrease by 24,833 bags over the weeks of trade leading up to Monday 29th. June, to see these stocks registered at 1,957,667 bags, on the day.
It was a firmer day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a positive sideways track for the day. The Sugar and Coffee markets ended the day on a positive note, while the Cocoa market ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.7929% higher; to see this index registered at 368.4827. The day starts with the U.S. Dollar steady, trading at 1.236 to Sterling, at 1.122 to the Euro and with the US Dollar buying 5.463 Brazilian Real.
The London and New York markets started the day yesterday trading on a modest positive note, both markets continued to trade on this positive note into the early afternoon trade. As the afternoon progressed the New York and London markets continued to trade on a modest close to par positive note. Late in the afternoon session saw both the London and New York markets trend very positive to both markets close on a firm positive note for the day.
The London market ended the day on a positive note and with 80.95% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note and with 82.20% of the earlier gains of the day intact. This firmer close might inspire some degree of confidence to possibly set the markets for a follow-through steady start to early trade today, against the prices yesterday, as follows:
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
SEP 1204 + 17 SEP 104.00 + 3.00
NOV 1221 + 16 DEC 106.55 + 3.10
JAN 1238 + 14 MAR 108.50 + 3.15
MAR 1255 + 15 MAY 109.55 + 3.15
MAY 1274 + 16 JUL 110.70 + 3.15
JUL 1292 + 17 SEP 111.85 + 3.20
SEP 1304 + 16 DEC 113.50 + 3.25
NOV 1320 + 16 MAR 115.10 + 3.25
