Coffee Market Report

The November to December contract arbitrage between the London and New York markets narrowed yesterday; to register this at 68.10 usc/Lb. This equates to 51.55% 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 250 bags yesterday to register these stocks at 1,180,139 bags, with 93.8% of these certified stocks being held in Europe at a total of 1,107,110 bags and the remaining 6.2% being held in the USA at a total of 73,029 bags. There is meanwhile a larger in number 1.280 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 2,929 bags.

The Certified Robusta coffee stocks held against the London exchange have been reported to decrease by 1,667 bags over the weeks of trade leading up to Monday 7th. September, to see these stocks registered at 1,827,833 bags, on the day.

It was a softer day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a negative track for the day. The Sugar market ended the day on a positive note, while the Cocoa and Coffee markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 1.0484% lower; to see this index registered at 408.3994. The day starts with the U.S. Dollar steady, trading at 1.296 to Sterling, at 1.178 to the Euro and with the US Dollar buying 5.362 Brazilian Real.

The London and New York markets started the day yesterday trading on a softer note, both markets soon came under pressure to accentuate the losses for the morning trade. As the afternoon progressed the New York market dropped deeper into negative territory, with the London market following suit in a more sedate manner. Both markets managed to bounce back off the lows of the day to see the markets settle on a negative note for the day.

The London market ended the day on a negative note and with 69.57% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note and with 27.94% of the earlier losses of the day intact. This close does little to inspire confidence and provides little indication for direction to possibly set the markets for a hesitant near to steady start against the prices yesterday, as follows:

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

NOV 1411 – 16                                                                   DEC 132.10 – 1.90
JAN 1423 – 16                                                                    MAR 132.75 – 1.80
MAR 1437 – 16                                                                  MAY 133.50 – 1.90
MAY 1450 – 17                                                                  JUL 134.30 – 1.90
JUL 1463 – 17                                                                    SEP 134.95 – 1.90
SEP 1476 – 17                                                                    DEC 135.65 – 1.90
NOV 1489 – 17                                                                  MAR 136.40 – 1.85
JAN 1500 – 17                                                                   MAY 136.80 – 1.85