Coffee Market Report
The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative raise their net long position by 6.40% within the market over the week of trade leading up to Tuesday 1st. December: to register a new net long position of 16,204 Lots which is the equivalent of 4,593,762 bags. This net long position has most likely been further increased, following the period of mixed but overall firmer sideways trade that has since followed.
The latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector of this raise their net long position within the market by 9.38% over the week of trade leading up to Tuesday 1st. December: to register a new net long position of 8,610 Lots which is the equivalent of 1,435,000 bags. This net long position has most likely been further increased, following the period of mixed but overall firmer sideways trade that has since followed.
The January 2021 to March 2021 contract arbitrage between the London and New York markets narrowed on Friday: to register this at 56.91 usc/Lb. This equates to 48.41% price discount for the London Robusta coffee market.
The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 2,097 bags on Friday, to register these stocks at 1,293,893 bags, with 93.9% of these certified stocks being held in Europe at a total of 1,215,133 bags and the remaining 6.1% being held in the USA at a total 78,760 bags. There was meanwhile a larger number 27,364 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 78,164 bags.
It was a neutral day overall on the commodity markets on Friday, 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 0.0757% higher; to see this index registered 436.9390. The day starts with the U.S. Dollar, trading at 1.342 Sterling, at 1.213 the Euro and with the US Dollar buying 5.156 Real.
The New York and London markets started the day on Friday trading on a firmer note, this support was short lived with both markets hitting a ceiling and dropping back from the highs of the day. As the afternoon progressed both the New York and the London markets continued on a softer path, the markets settled on a softer note for the day.
The London market ended the day on a negative note with 64.29% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 81.96% of the earlier losses of the day intact. This softer close does little to indicate direction and one might think the markets are due for a hesitant start to early trade today, against the prices set on Friday, as follows:
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
JAN 1337 – 9 MAR 117.55 – 2.50
MAR 1355 – 16 MAY 119.35 – 2.45
MAY 1367 – 16 JUL 121.00 – 2.45
JUL 1384 – 15 SEP 122.45 – 2.35
SEP 1400 – 15 DEC 124.15 – 2.30
NOV 1416 – 15 MAR 125.75 – 2.20
JAN 1431 – 15 MAY 126.50 – 2.25
MAR 1446 – 15 JUL 127.15 – 2.30
