Coffee Market Report
The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector increase their net long position by 2.43% within the market over the week of trade leading up to Tuesday 2nd. March: to register a net long position of 36,285 which is the equivalent of 10,286,637 bags. This net long position has most likely been marginally increased, following the period of softer 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 market increase their net long position by 144.11% within the market over the week of trade leading up to Tuesday 2nd. March: to register a net long position of 28,473 Lots which is the equivalent of 4,745,500 bags. This position has most likely been drastically increased, following the period of firmer trade has since followed.
The May-to-May contract arbitrage between the London and New York markets narrowed on Friday: to register this at 66.21 usc/Lb. This equates to 51.39% 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 9,311 bags on Friday, to register these stocks at 1,806,933 bags, with 94.6% of these certified stocks being held in Europe at a total of 1,710,137 bags and the remaining 5.4% being held in the USA at a total 96,796 bags. There was meanwhile a larger in number 11,876 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 58,466 bags.
It was a positive day overall on the commodity markets on Friday, to see the overall macro commodity index taking something of a firm sideways track for the day. The Oil, Natural Gas, Sugar, Cotton, Copper, Orange Juice, Wheat, Corn and Soybean markets ended the day on a positive note, while the Cocoa, Coffee, Gold and Silver markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.45% higher; to see this index registered 493.54. The day starts with the U.S. Dollar, trading at 1.383 Sterling, at 1.191 the Euro and with the US Dollar buying 5.691 Real.
The New York and London markets started the day on Friday trading on a modest firmer note, both markets attracted a degree of selling pressure early in the morning session to see the markets set on a softer path for the day. As the afternoon progressed both the New York and the London markets recovered to some degree buoyed by buying support, this was short lived as the markets very soon came under a degree of pressure to see both the London and the New York markets set on a softer path for the remainder of the afternoon session, to see both markets settle near to the lows of the day.
The London market ended the day on a negative note with 80.65% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 81.48% of the earlier losses of the day intact. This softer close, with both markets settling near to the lows of the day does little to inspire confidence and one might think that the markets are due for little better than a hesitant steady start for early trade today, against the prices set on Friday, as follows:
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
MAY 1381 – 25 MAY 128.85 – 3.30
JUL 1400 – 27 JUL 130.85 – 3.20
SEP 1415 – 27 SEP 132.65 – 3.20
NOV 1429 – 27 DEC 134.40 – 3.05
JAN 1443 – 27 MAR 135.90 – 2.90
MAR 1459 – 27 MAY 136.70 – 2.80
MAY 1475 – 27 JUL 137.25 – 2.80
JUL 1490 – 28 SEP 137.65 – 2.80
