Coffee Market Report
The Coffee Exporters Association in Brazil Cecafé have reported that the countries green coffee exports for the month of November were 35.91% higher than the same month last year, to total 4.02 million bags, this number made up of 3.69 million bags of Arabica Coffee up 33.85% from the same month last year and 333,887 bags of Robusta Coffee up 63.63% from the same month last year.
The Coffee Exporters Association in Brazil Cecafé have since reported the cumulative exports of green coffee for the first five months of the July 2020 to June 2021 Brazil coffee year, to be 17.17% higher, overall at the end of November than the same period in the previous coffee year at a total of 18,17 million bags, this large increase in reported exports for this month of November when compared to the same month in the previous years can be attributed to the biennially bearing larger production for the 2020 coffee year, to similarly reflect the increased exports of Conilon robusta, to consumer markets over the same month in the previous year.
The January 2021 to March 2021 contract arbitrage between the London and New York markets narrowed yesterday: to register this at 57.54 usc/Lb. This equates to 49.16% 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 17,267 bags yesterday, to register these stocks at 1,316,135 bags, with 94% of these certified stocks being held in Europe at a total of 1,237,650 bags and the remaining 6% being held in the USA at a total 78,485 bags. There was meanwhile a smaller in number increase by 5,785 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 94,104 bags.
The Certified Robusta coffee stocks held against the London exchange have been reported to increase by 21,833 bags over the weeks of trade leading up to Monday 7th December, to see these stocks registered at 2,238,833 bags, on the day.
It was a neutral day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a sideways 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 0.0613% higher; to see this index registered 434.4786. The day starts with the U.S. Dollar, trading at 1.336 Sterling, at 1.209 the Euro and with the US Dollar buying 5.171 Real.
The New York and London markets started the day yesterday trading close to par on a modest softer note, both markets continued to oscillate around par for most of the morning session. As the afternoon progressed the New York and London markets attracted selling pressure to see the markets trend softer for the early afternoon session, both markets hit a floor to limit the losses for the day, albeit that both the London and the New York markets settled near to the lows of the day.
The London market ended the day on a negative note with 78.57% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 80% of the earlier losses of the day intact. This softer close does little to indicate direction, with both markets settling near to the lows of the day one might think the markets are due for a hesitant start to early trade today, against the prices set yesterday, as follows:
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
JAN 1312 – 14 MAR 117.05 – 2.20
MAR 1334 – 11 MAY 118.80 – 2.15
MAY 1347 – 9 JUL 120.35 – 2.10
JUL 1364 – 9 SEP 121.85 – 2.05
SEP 1381 – 9 DEC 123.50 – 2.0
NOV 1397 – 9 MAR 125.10 – 2.10
JAN 1412 – 9 MAY 125.85 – 2.10
MAR 1427 – 9 JUL 126.55 – 2.10
