Coffee Market Report

The world’s largest coffee cooperative Cooxupe, in Brazil have come forth with a report to confirm that their members have already harvested 34% of the new, majority natural processed arabica crop coffees as at 30th. June 2023. This compared with the same period last year, and a harvest of 25% of the new crop. Weather reports indicate that cooler temperatures experienced at higher altitudes to improve toward the teens in degrees Celsius and has been conducive for harvest.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to remain unchanged yesterday, to register these stocks at 544,595 bags, with 98.84% of these certified stocks being held in, Europe at a total of 538,264 bags and the remaining 1.16% being held in the USA at a total 6,331. Of this, a total 166,080 bags, or 30.50% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 64.43% of these certified coffees, originating from Honduras. There was meanwhile 320 bags increase to the number of bags pending grading to the exchange; to register 5,649 bags pending grading on the day.

The September 2023 to September 2023 contract arbitrage between the London and New York markets narrowed yesterday to register this at 44.96 usc/Lb. This equates to 28.29% price discount for the London Robusta coffee market.

It was a firmer day on the commodity markets yesterday, with the leading in influence oil markets firmer on the day. The Sugar, Wheat, Soybean, Gold, Silver, Platinum and Palladium markets ended the day on a positive note, while the Coffee and Cocoa markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.274 Sterling, at 1.088 the Euro and with the US Dollar buying 4.927 Brazil Real.

The New York and London markets started the day yesterday trading on modest softer notes respectively. The markets were continued to trade in modest firmer territory for the remainder of the early morning session to oscillate either side of par. As the afternoon progressed, the markets gained support to trend in a firmer direction, buoyed by buying in the markets, the markets quickly hit a ceiling to limit the gains for the day and drop back from the highs to project lower. The selling activity started to wane toward the end of the days’ trade, to see the New York market narrowly recover some of the earlier losses of the day, while the London market was seen to recover most of the earlier losses to settle on a modest softer note at the close.

The London market ended the day on a negative note with 65.22% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 60.38% of the earlier losses of the day intact. This softer close for the markets, albeit that the markets recovered some of the earlier losses of the day, does little to indicate direction and 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.

SEP 2512 – 15                                                          SEP 158.90 – 1.60
NOV 2414 – 17                                                        DEC 158.15 – 1.55
JAN 2353 – 16                                                        MAR 158.65 – 1.65
MAR 2319 – 15                                                       MAY 159.85 – 1.75
MAY 2299 – 15                                                       JUL 161.15 – 1.80
JUL 2289 – 15                                                         SEP 162.45 – 1.85
SEP 2280 – 15                                                         DEC 163.90 – 1.85
NOV 2271 – 15                                                       MAR 164.90 – 1.85