Coffee Market Report
The world’s largest coffee cooperative Cooxupe, in Brazil have come forth with a report to confirm that their members have harvested 92.04% of the new, majority natural processed arabica crop coffees as at 30th. August 2023. This compared with the same period last year, and a harvest of 91.01% of the new crop, Weather continues to be conducive and this year the pace of harvest has thus far met with a similar pace as that of the 2019 crop year.
The USA will be observing their Labour Day holiday on Monday the 4th September, which will see the New York market closed for the day. Thus, leaving the London market to trade solo on the day.
The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 10,192 bags yesterday, to register these stocks at 490,739 bags, with 98.44% of these certified stocks being held in, Europe at a total of 483,101 bags and the remaining 1.56% being held in the USA at a total 7,638. Of this, a total 136,433 bags, or 27.80% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 67.29% of these certified coffees, originating from Honduras. There was meanwhile no change to the number of bags pending grading to the exchange; to register 0 bags pending grading on the day.
The November 2023 to December 2023 contract arbitrage between the London and New York markets widened yesterday to register this at 42.13 usc/Lb. This equates to 27.12% price discount for the London Robusta coffee.
It was mixed day on the commodity markets yesterday, as the US Dollar lost ground against a basket of other currencies. The Coffee, Cocoa, Sugar, Wheat, Gold and Platinum markets ended the day on a positive note, while the Corn, Soybean, Silver and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.272 Sterling, at 1.092 the Euro and with the US Dollar buying 4.889 Brazil Real.
The New York and London markets started the day yesterday trading to the north of par on a firmer notes respectively. Both markets attracted support during the early morning session to track mildly firmer for the remainder of the morning session before gaining momentum, as support was seen to build during the late morning session. As the afternoon progressed the New York market hit a ceiling to limit the gains for the day with sellers returning to the floor. The New York market was weighed lower before finding support late in the day to see the market rally and gain momentum quickly. The London market continued a firmer path carrying upward momentum into the afternoon session. The London market settled near to the highs of the day on a firm note, while the New York market rally saw the market settle on a firmer note, with most of their earlier gains intact.
The London market ended the day on a positive note with 85.45% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note with 78.95% of the earlier gains of the day intact. This firmer close for the markets, might provide some degree of support and direction, with both the New York and the London markets settling near to the highs of the day, one might think that the markets are due for a follow through steady start to early trade today, against the prices set yesterday, as follows:
LONDON ROBUSTA US$/MT NEW YORK USC/LB.
NOV 2496 + 47 DEC 155.35 + 2.25
JAN 2370 + 25 MAR 156.35 + 2.15
MAR 2314 + 15 MAY 157.25 + 2.10
MAY 2293 + 12 JUL 157.80 + 2.05
JUL 2285 + 11 SEP 158.35 + 2.10
SEP 2281 + 12 DEC 159.35 + 2.10
NOV 2279 + 12 MAR 160.30 + 2.00
JAN 2275 + 12 MAY 161.40 + 2.00
