Coffee Market Report

The Certified washed Arabica coffee stocks held against the New York exchange were seen to remain unchanged yesterday, to register these stocks at 258,066 bags, with 97.89% of these certified stocks being held in, Europe at a total of 252,615 bags and the remaining 2.11% being held in the USA at a total 5,451 Bags. Of this, a total 52,890 bags, or 20.49% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 61.43% of these certified coffees, originating from Honduras. There was, meanwhile, an increase of 13,278 bags in the number of bags pending grading to the exchange; to register 48,000 bags pending grading on the day.

The March 2024 to March 2024 contract arbitrage between the London and New York markets widened yesterday, to register this at 50.78 Usc/Lb. This equates to 27.59% price discount for the London Robusta coffee.

It was a mixed day on the commodity markets yesterday, as anticipated U.S.A. consumer price report reflected inflation above market expectations. It was a mildly firmer day for the US Dollar against a basket of other major currencies. It was another softer day for Sugar and arabica Coffee, the rest of the board in mostly positive territory on the close, and a firm day for robusta Coffee, Corn, Wheat, Soybean, Cotton and Copper, although it was a softer close on the day for Gold, Silver, Platinum and Palladium markets. The day starts with the U.S. Dollar trading at 1.275 Sterling, at 1.096 the Euro and with the US Dollar buying 4.869 Brazil Real.

The New York Arabica and London Robusta markets started the day on a softer note. The New York market continued to track lower through to midsession with buying activity reappearing at the low to set the floor for the day. The London market conversely recovered much of the early losses to break above par and register buyer activity in a void of seller participation, to see this market on a positive track to the latter half of the trading day. As the America’s opened for their business day, volume picked up pace against the New York arabica market with speculative participation and short covering activity adding momentum to the days’ gains. The performance in London for the latter part of the day, lacking supportive volume slipped lower, to finish the day following a wide trading range day on a negative note, above the low of the day.

Monday is a national holiday in U.S.A. as the nation observes Martin Luther King Jr. Day, thus the London market will trade solo for the day.

The London market ended the day on a negative note with 54.55% of the earlier gains of the day intact, while the New York market ended the day trading on a positive note with 42.65% of the earlier gains of the day intact against the prices set yesterday, as follows:

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

MAR      2938 – 12                                      MAR      184.05 + 2.90
MAY      2831 – 14                                      MAY      181.00 + 2.05
JUL        2754 – 16                                      JUL        181.05 + 1.90
SEP        2700 – 19                                      SEP        181.70 + 1.80
NOV      2671 – 19                                      DEC       182.85 + 1.75
JAN       2650 – 11                                      MAR      184.45 + 1.75
MAR     2639 – 5                                        MAY      185.20 + 1.60
MAY     2629 – 2                                        JUL        185.90 + 1.45