Coffee Market Report
The world’s largest coffee cooperative Cooxupé, in Brazil, have come forth with a report to confirm that their members have already harvested 52.15% of the new, majority natural processed arabica crop coffees as at Friday last week. During the same period last year, they had already harvested 75.40% of the new crop while the slowdown in harvest pace this year can be attributed to the biennially bearing larger nature of the Brazil coffee crop. The prior larger biennially bearing larger crop in 2018, was around 55.70% harvested by the same time in the year, and thus this new July 2020 to June 2021 crop harvest which is acknowledged to be a record crop year, is well on track, with weather similarly conducive.
The September to September contract arbitrage between the London and New York markets widened yesterday; to register this at 46.80 usc/Lb. This equates to 43.19% 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 275 bags yesterday to register these stocks at 1,597,932 bags, with 94.1% of these certified stocks being held in Europe at a total of 1,504,440 bags and the remaining 5.9% being held in the USA at a total of 93,492 bags. There was meanwhile no change to the number of bags pending grading for this exchange; to register these pending grading stocks at 2,776 bags.
The Certified Robusta coffee stocks held against the London exchange have been reported to decrease by 15,500 bags over the weeks of trade leading up to Monday 20th. July, to see these stocks registered at 1,889,667 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 track for the day. Speculative sentiment once again buoyed broad based gains in commodity and equity markets. The US Dollar registered a softer day against a basket of major currencies, contributing to the firmer day. The Sugar, Cocoa and Coffee markets ended the day on a positive note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 1.4437% higher; to see this index registered at 384.1609. The day starts with the U.S. Dollar softer but steady, trading at 1.273 to Sterling, at 1.158 to the Euro and with the US Dollar buying 5.119 Brazilian Real.
The New York and London markets started the day yesterday trading on a close to par softer note, both markets maintained the mildly positive track met with a swell of speculative buying support as the America’s started their day, to trend positive into the early afternoon trade. As the afternoon progressed both markets buoyed by speculative support and the overall positive sentiment in the macro commodity sector and a softer US Dollar performance added impetus, and both markets gained positive momentum to move deeper into positive territory. It was a hefty volume day, as the New York market rallied toward the close, with the London market following suit in a more sedate manner, to see both markets settle near to the highs of the day.
The London market ended the day on a very positive note and with 95.24% of the earlier gains of the day intact, while the New York market ended the day on a likewise very positive note and with 94.29% of the earlier gains of the day intact. This positive close, with both markets settling near to the highs of the day, might inspire some degree of confidence to possibly set the markets for a follow-through steady start to early trade today, against the prices set yesterday, as follows:
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
SEP 1357 + 40 SEP 108.35 + 6.60
NOV 1370 + 38 DEC 111.00 + 6.50
JAN 1382 + 40 MAR 113.00 + 6.40
MAR 1393 + 39 MAY 114.05 + 6.30
MAY 1406 + 39 JUL 114.95 + 6.15
JUL 1420 + 39 SEP 115.85 + 6.05
SEP 1431 + 39 DEC 117.50 + 6.00
NOV 1447 + 38 MAR 119.20 + 5.95
