Coffee Market Report
| The markets remain devoid of fundamental supportive news and the frost risk for Brazil is now on the wane. The northern hemisphere coffee consumer markets are in peak summer holiday season, which are traditionally lower consumption months, consumer roasters are side-lined, with ample stocks being held in these consumer countries to draw from in the event of any short-term roaster fill-in needs.
The September to September contract arbitrage between the London and New York markets widened yesterday; to register this at 41.97 usc/Lb. This equates to 42.67% 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 8,212 bags yesterday to register these stocks at 1,615,196 bags, with 93.1% of these certified stocks being held in Europe at a total of 1,503,857 bags and the remaining 6.9% being held in the USA at a total of 111,339 bags. There was meanwhile no change to the number of bags pending grading for this exchange; to register these pending grading stocks at 19,146 bags. It was a neutral day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a sideways track for the day. The Cocoa, Coffee, Cotton, Copper Corn and Soybean markets ended the day on a positive note, while the Oil, Natural Gas, Sugar, Orange Juice, Wheat, Gold and Silver markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.1405% higher; to see this index registered at 373.4128. The day starts with the U.S. Dollar steady, trading at 1.255 to Sterling, at 1.138 to the Euro and with the US Dollar buying 5.331 Brazilian Real. The New York and London markets started the day yesterday trading close to par on modest negative note, both markets started to attract buying support to move onto a neutral track soon after. As the afternoon progressed both the New York and London markets continued on their respective positive tracks to see the markets close on a positive note for the day. The London market ended the day on a positive note and with 84.61% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note and with 45.45% of the earlier gains of the day intact. This positive close might assist towards some degree of confidence to possibly set the markers for a hesitant steady follow-through start to early trade today, against the prices set yesterday, as follows: LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb. SEP 1243 + 17 SEP 98.35 + 1.15 |
