Coffee Market Report
The January 2021 to March 2021 contract arbitrage between the London and New York markets widened yesterday: to register this at 55.19 usc/Lb. This equates to 47.11% price discount for the London Robusta coffee market.
The Certified washed Arabica coffee stocks held against the New York exchange was seen to decrease by 846 bags yesterday, to register these stocks at 1,246,345 bags, with 93.5% of these certified stocks being held in Europe at a total of 1,165,920 bags and the remaining 6.5% being held in the USA at a total 80,425 bags. There was meanwhile a lager in number 13,120 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 57,265 bags.
The Certified Robusta coffee stocks held against the London exchange have been reported to increase by 6,000 bags over the weeks of trade leading up to Monday 23rd. November, to see these stocks registered at 2,224,667 bags, on the day.
The commodity markets ahead of the Thanksgiving Day public Holiday in the USA. Were mostly marginally softer in trade yesterday, to see the overall macro commodity index taking something of a sideways track for the day. The Coffee markets ended the day on a positive note, while the Cocoa and Sugar markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.0040% lower; to see this index registered 437.0345. The day starts with the U.S. Dollar, trading at 1.339 Sterling, at 1.193 the Euro and with the US Dollar buying 5.324 Real.
The London and New York markets started the day on yesterday trading close to par on a modest softer note, both markets continued to oscillate around par for the remainder of the morning session. As the afternoon progressed the markets buoyed by some degree of buying support early in the afternoon session gained momentum only to hit a ceiling and drop back from the highs of the day to see the New York market settle on a positive note for the day, while the London market recovered late in the day to settle near to the highs of the day.
The London market ended the day on a modest positive note with 92.86% of the earlier gains of the day intact. while the New York market ended the day on a likewise positive note with 38.46% of the earlier gains of the day intact. This firmer close might inspire some degree of confidence, however with the USA. Markets closed for the Thanksgiving Day holiday, one might nit expect any excitement for the London market today, against the prices set yesterday, as follows:
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
JAN 1366 + 13 MAR 117.15 + 1.25
MAR 1376 + 11 MAY 119.00 + 1.15
MAY 1388 + 11 JUL 120.70 + 1.20
JUL 1401 + 12 SEP 122.10 + 1.20
SEP 1416 + 12 DEC 123.55 + 1.15
NOV 1432 + 12 MAR 124.95 + 1.15
JAN 1448 + 13 MAY 125.75 + 1.15
MAR 1464 + 12 JUL 126.50 + 1.15
