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 this market by 8.68% over the week of trade leading up to Tuesday 14th. July; to register a new net short position of 24,776 lots. Meanwhile the longer term in nature Index Fund sector of this market decreased their net long position within the market by 0.81%, to register a net long position of 46,661 Lots on the day.

Over the same week, the Non-Commercial Speculative sector of this market cut their net short sold position within the market by 0.51%, to register a new net short position of 23,722 Lots which is the equivalent of 6,725,082 bags. This net short position has most likely been little changed, following the period of mixed but overall sideways trade that has since followed.

The September to September contract arbitrage between the London and New York markets narrowed yesterday; to register this at 41.79 usc/Lb. This equates to 41.89% 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 4,515 bags yesterday to register these stocks at 1,594,082 bags, with 94% of these certified stocks being held in Europe at a total of 1,499,490 bags and the remaining 6% being held in the USA at a total of 94,592 bags. There was meanwhile a larger in number 5,643 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 13,503 bags.

It was a softer 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 market ended the day on a positive note, while the Sugar and Coffee markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.4075% lower; to see this index registered at 373.7245. The day starts with the U.S. Dollar steady, trading at 1.268 to Sterling, at 1.144 to the Euro and with the US Dollar buying 5.329 Brazilian Real.

The New York and London markets started the day yesterday trading on a negative note, both markets maintained this stance into the early afternoon trade. As the afternoon progressed both markets attracted a degree of buying support to see the markets trend positive, this was short lived as the markets started to fall lower late in the day. Both the New York and London markets closed near the lows of the day.

The London market ended the day on a negative note and with 93.75% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note and with 78.46 of the earlier losses of the day intact. This softer close does little to indicate direction, albeit relatively low volumes were seen to trade for the day, and one might think the markets are due for little better than a hesitant steady start top early trade today, against the prices set yesterday, as follows:

LONDON ROBUSTA US$/MT                                           NEW YORK ARABICA USc/Lb.

SEP 1278 – 15                                                                      SEP 99.75 – 2.55
NOV 1295 – 10                                                                     DEC 102.45 – 2.35
JAN 1303 – 5                                                                        MAR 104.60 – 2.25
MAR 1313 – 4                                                                      MAY 105.75 – 2.20
MAY 1325 – 4                                                                      JUL 106.90 – 2.15
JUL 1338 – 4                                                                        SEP 108.00 – 2.10
SEP 1348 – 5                                                                        DEC 109.70 – 2.05
NOV 1363 – 5                                                                      MAR 111.45 – 2.05