Coffee Market Report
| 30th. April 2021. The July-to-July contract arbitrage between the London and New York markets narrowed yesterday; to register this at 77.14 usc/Lb. This equates to 53.94% price discount for the London Robusta coffee market. This wide arbitrage will likely be viewed by price sensitive roasters as an attractive alternative discount for robusta against the comparatively higher value arabica coffee. The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 4,720 bags yesterday, to register these stocks at 1,922,815 bags, with 95.17% of these certified stocks being held in Europe at a total of 1,829,932 bags and the remaining 4.83% being held in the USA at a total 93,133 bags. Of this, a total 975,160 bags, or 50.72% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 39.49% of these certified coffees, originating from Honduras. There was an increase in the number of bags pending grading to the exchange, by 1,925 bags; to register these pending grading stocks at 116,586 bags. It was a mixed day on the commodity markets yesterday, with positive economic indicators reported within the largest consumer U.S.A., sentiment buoyed by the prospects of this economy opening at a progressive pace in line with the country’s much publicised vaccination rollout program. The US Dollar registered a stronger finish on the day against a basket of major currencies. It was a positive day for the Oil markets, Palladium, Wheat and Cocoa, a mixed day for Corn and a softer day for Coffee, Sugar, Soybean, Gold, Silver, Platinum. The day starts with the U.S. Dollar trading at 1.3938 Sterling, at 1.2117 the Euro and with the US Dollar buying 5.3381 Brazil Real. The coffee markets opened the day in positive territory, the London robusta market in a narrow early morning range. New York began the day in positive territory, with a boost toward the top of the day early in the morning session. This was met with selling pressure to cap the ceiling and follow through buying activity toward midsession held the market above par in positive territory. As the morning progressed, the upward momentum failed to break higher, in combination with a softer Brazil Real and the dominant general continuation of speculative profit taking, increased selling activity in the New York arabica market weighed in, to see this market break through par into negative territory around midsession. The London robusta market followed a similar lower trend in the latter half of the session, to register a close narrowly above the days’ low. Following a volatile morning and a wide range of trade, New York plateaued toward the end of the day, settled into a narrow range in softer territory, and registered a close, marginally recovered from the low registered on the day, after a fair volume day, as follows: LONDON ROBUSTA US$/MT NEW YORK USC/LB. JUL 1452 – 16 JUL 143.00 – 2.85 |
