Coffee Market Report

The March 2021 to March 2021 contract arbitrage between the London and New York markets widened yesterday: to register this at 64.76 usc/Lb. This equates to 52.02% 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 7,371 bags yesterday, to register these stocks at 1,609,775 bags, with 94.8% of these certified stocks being held in Europe at a total of 1,525,765 bags and the remaining 5.2% being held in the USA at a total 84,010 bags. There was meanwhile a larger in number 8,707 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 86,617 bags.

The Certified Robusta coffee stocks held against the London exchange have been reported to increase by 10,833 bags over the weeks of trade leading up to Monday 25th. January, to see these stocks registered at 2,375,333 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 sideways track for the day. The Cocoa and Coffee markets ended the day on a positive note, while the Sugar market remained unchanged on the day. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.7576% higher; to see this index registered 472.0546. The day starts with the U.S. Dollar, trading at 1.374 Sterling, at 1.216 the Euro and with the US Dollar buying 5.355 Real.

The New York and London markets started the day yesterday trading on a modest softer note, the markets hovered around par for most of the morning session before taking somewhat of a softer track for the late afternoon session. As the afternoon progressed both the New York and London markets hit a floor to limit the losses of the day and to see the markets bounce off the lows of the day and trend firmer. Both markets gained momentum late in the day to hit a ceiling and drop back from the highs of the day to see both the New York and the London markets settle with around half of the earlier gains of the day intact.

The London market ended the day on a modest positive note with 50% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note with 51.02% of the earlier gains of the day intact. This modest firmer close might inspire some degree of follow through confidence to possibly set the markets for a steady start to early trade today, against the prices set yesterday, as follows:

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

MAR 1317 + 8                                          MAR 124.50 + 1.25
MAY 1325 + 7                                          MAY 126.60 + 1.20
JUL 1340 + 8                                            JUL 128.55 + 1.20
SEP 1356 + 8                                            SEP 130.40 + 1.25
NOV 1372 + 7                                          DEC 132.40 + 1.25
JAN 1385 + 6                                           MAR 134.20 + 1.20
MAR 1400 + 5                                         MAY 135.00 + 1.15
MAY 1414 + 6                                         JUL 135.65 + 1.10