Coffee Market Report

The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector cut their net long position by 39.13% within the market over the week of trade leading up to Tuesday 15th. March 2022: to register a net long position of 20,535 lots, which is the equivalent of 5,821,582 bags. This net long position has most likely been decreased further following the period of mixed but overall softer trade that has since followed.

The May 2022 to May 2022 contract arbitrage between the London and New York markets widened on Friday to register this at 121.76 usc/Lb. This equates to 55.33% 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 13,329 bags on Friday, to register these stocks at 1,085,621 bags, with 95.05% of these certified stocks being held in Europe at a total of 1,031,957 bags and the remaining 4.95% being held in the USA at a total 53,664. Of this, a total 508,774 bags, or 46.87% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 44.03% of these certified coffees, originating from Honduras. There were meanwhile 15,359 bags decrease to the number of bags pending grading to the exchange; to register 83,200 bags pending grading on the day.

It was a mixed day on the commodity markets on Friday, as the leading in influence Oil market ended the day higher. The Sugar, Cocoa, Coffee and Platinum markets ended the day on a positive note, while the Wheat, Corn, Soybean, Gold, Silver and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.315 Sterling, at 1.104 the Euro and with the US Dollar buying 5.024 Brazil Real.

The New York market started the day on Friday trading on a modest firmer note, while the London market started the day trading to the south of par. Both markets continued to trade in a narrow range for the early morning session, oscillating either side of par. The markets gained buying support early during the mid-morning session. As the afternoon progressed the New York market started to add more value and quickly trigger buy stops along the way to accentuate the gains for the day. The London market followed suit with the influence of further weight being added within the New York market, to likewise add more value and trend positive, gaining momentum throughout the session. The New York market hit a ceiling late in the day, to limit the gains and see the market settle near to the highs of the day, with most of the gains of the day intact. While the London market followed suit to also settle on a firmer note at the close.

The London market ended the day on a positive note with 77.78% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note with 76.69% of the earlier gains of the day intact. This firmer close for the markets and with the New York market trending firmer towards the close and settling near to the highs of the day, might lead one to think that the markets are for a steady start to early trade today, against the prices set on Friday, as follows:

LONDON ROBUSTA US$/MT                NEW YORK USC/LB.

MAY 2167 + 28                                          MAY 220.05 + 3.95
JUL 2136 + 23                                            JUL 219.65 + 3.65
SEP 2120 + 20                                            SEP 218.60 + 3.40
NOV 2105 + 18                                          DEC 216.35 + 2.95
JAN 2097 + 18                                            MAR 213.80 + 2.65
MAR 2093 + 16                                          MAY 211.90 + 2.45
MAY 2090 + 14                                          JUL 209.40 + 2.25
JUL 2093 + 14                                            SEP 206.35 + 1.95