Coffee Market Report

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 8,150 bags yesterday, to register these stocks at 267,340 bags, with 97.96% of these certified stocks being held in, Europe at a total of 261,889 bags and the remaining 2.04% being held in the USA at a total 5,451 Bags. Of this, a total 60,750 bags, or 22.72% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 58.56% of these certified coffees, originating from Honduras. There was meanwhile, a decrease of 9,410 bags in the number of bags pending grading to the exchange; to register 43,770 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 36.05 Usc/Lb. This equates to 20.12% price discount for the London Robusta coffee.

It was a softer day overall on the commodity markets yesterday, with the US Dollar continuing to show some degree of muscle against a basket of other currencies hovering at a one month high. The Cocoa and Wheat markets ended the day on a positive note, while the Coffee, Corn, Soybean, Sugar, Gold, Silver, Platinum and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.268 Sterling, at 1.087 the Euro and with the US Dollar buying 4.926 Brazil Real.

The New York market started the day yesterday trading on a modest firmer note, while the London market started the day trading to the south of par on a softer note. The markets were quickly pressured lower by selling, encountering resistance to see the markets move lower during the remainder of the morning session. As the afternoon progressed the volume increased to contribute to the day’s direction with speculative selling returning to the New York floor to trigger stops along the way. The London market followed suit and the markets continued to project lower with a measure of speculative long liquidation to accentuate the losses for the day’s trade. The selling activity started to wane toward the end of the days’ trade, to see the London market recover most of the earlier losses of the day, while the New York market was seen to settle near to the lows of the day, on a very soft note at the close.

The London market ended the day on a negative note with 22.22% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 87.68% of the earlier losses of the day intact. This softer close for the markets and with the New York market retaining most of the earlier losses to settle near to the lows of the day, does little to inspire confidence and one might think that the markets are due for little better than a hesitant start to early trade today, against the prices set yesterday, as follows:

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

MAR      3156 – 14                                     MAR      179.20 – 6.05
MAY      2962 – 42                                     MAY      176.00 – 6.05
JUL        2837 – 52                                    JUL         175.85 – 5.95
SEP        2760 – 55                                    SEP         176.45 – 5.95
NOV      2715 – 62                                    DEC        177.65 – 5.90
JAN       2680 – 67                                    MAR       179.30 – 5.80
MAR     2664 – 67                                    MAY       180.15 – 5.65
MAY     2648 – 73                                    JUL         180.85 – 5.60