Coffee Market Report

The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 2,256 bags yesterday, to register these stocks at 259,190 bags, with 97.90% of these certified stocks being held in, Europe at a total of 253,739 bags and the remaining 2.10% being held in the USA at a total 5,451 Bags. Of this, a total 56,270 bags, or 21.71% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 60.29% of these certified coffees, originating from Honduras. There was meanwhile, an increase of 2,800 bags in the number of bags pending grading to the exchange; to register 53,180 bags pending grading on the day.

The March 2024 to March 2024 contract arbitrage between the London and New York markets narrowed yesterday, to register this at 41.43 Usc/Lb. This equates to 22.37% price discount for the London Robusta coffee.

It was a softer day overall on the commodity markets yesterday, with the US Dollar gaining over 1% against a basket of other currencies, a firmer Dollar is seen to be a bearish factor for commodities traded in other currencies. The Coffee, and Soybean markets ended the day on a positive note, while the Corn, Wheat, Gold, Silver, Platinum and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.263 Sterling, at 1.087 the Euro and with the US Dollar buying 4.924 Brazil Real.

The New York and London markets started the day trading on a firmer note, a continuation through the early morning session oscillating between par and mildly positive in early trade. As the day progressed, a firmer trend built as activity increased in New York. The arrival of the America’s at the start of their business day pushed New York higher, triggering buy stops along the way to accentuate the gains for the day, this assisted to trigger speculative short covering which saw the New York market gain ground quickly throughout the afternoon session, with the London market following suit to make significant gains throughout the afternoon session. The New York market continued the upward momentum before being capped briefly very late in the day. Both the New York and the London markets settled near to the highs of the day, on very firm notes respectively.

The London market ended the day on a positive note with 96.32% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note with 73.94% of the earlier gains of the day intact. This firmer close for the markets, with both the New York and the London markets settling near to the highs of the day on firmer notes respectively, might indicate some degree of direction to see the markets pressured 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.

MAR      3170 + 183                                   MAR      185.22 + 5.25
MAY      3004 + 142                                   MAY      182.05 + 4.70
JUL        2889 + 112                                   JUL        181.80 + 4.35
SEP        2815 + 94                                     SEP        182.40 + 4.30
NOV       2777 + 87                                    DEC       183.55 + 4.20
JAN        2747 + 84                                    MAR      185.10 + 4.10
MAR       2731 + 80                                   MAY      185.10 + 4.05
MAY       2721 + 79                                   JUL        186.45 + 4.00