Coffee Market Report
| The Ivory Coast have reported that their provisional coffee exports for the month of September were 62,200 bags or 264.87% higher than the same month last year, at a total of 85,683 bags. This has contributed to their country’s cumulative coffee exports for the full October 2021 to September 2022 coffee year to be 10,016 bags or 1.46% lower than the same period last year, at a total of 675,067 bags.
The December 2022 to January 2023 contract arbitrage between the New York and London markets narrowed yesterday to register this at 83.40 usc/Lb. This equates to 50.11% price discount for the London Robusta coffee market. This wide arbitrage may 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 20,079 bags yesterday, to register these stocks at 426,717 bags, with 87.51% of these certified stocks being held in Europe at a total of 373,439 bags and the remaining 12.49% being held in the USA at a total 53,278. Of this, a total 269,196 bags, or 63.09% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 30.24% of these certified coffees, originating from Honduras. There was meanwhile a 48,922 bags increase to the number of bags pending grading to the exchange; to register 204,774 bags pending grading on the day. The Certified Robusta coffee stocks held against the London exchange have been reported to increase by 5,833 bags over the week of trade leading up to Monday 7th. November to see these stocks registered at 1,509,667 bags, on the day. It was a mixed day on the commodity markets yesterday, with the US Dollar losing ground against a basket of other currencies, as macro-economic indicators suggest that the US Federal Reserve will begin to taper their tight monetary policy. The Cocoa, Sugar, Gold, Silver, Platinum and Palladium markets ended the day on a positive note. The Coffee, Corn, Soybean and Wheat markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.154 Sterling, at 1.007 the Euro and with the US Dollar buying 5.144 Brazil Real. The New York and London markets started the day yesterday trading on a modest near to par firmer note. Both the New York and the London markets quickly hit a ceiling for the day to limit the day’s gains. The markets dropped back from the early highs to be set on a softer path for the remainder of the session. As the afternoon progressed, and the activity within New York increased, the markets pressured lower by some degree of long liquidation selling continued to project lower. The New York market continue lower, before gaining some degree of support late in the day, to settle near on a softer note at the close, with first notice day in the prompt month, on the horizon. The London market followed suit to likewise settle near to the lows of the day on a softer note at the close. The London market ended the day on a negative note with 83.33% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 60.74% of the earlier losses of the day intact. This follow through softer close for the markets, and with both the New York and London markets settling near to the lows of the day ahead of first notice day on the prompt month in New York approaching on the 21st. November, one might think that 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 USC/LB. JAN 1831 – 20 DEC 166.45 – 4.10 |
