Coffee Market Report

The Certified washed Arabica coffee stocks held against the New York arabica market were seen to increase by 8,820 bags yesterday, to register these stocks at 661,492 bags, with 99.72% of these certified stocks being held in, Europe at a total of 659,655 bags and the remaining 0.28% being held in the USA at a total 1,837 Bags. Of this, a total 311,220 bags, or 47.05% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 17.22% of these certified coffees, originating from Honduras. The pending grading stocks were seen to decrease by 4,960 bags; to register 50,974 bags pending grading on the day.

The July 2024 to July 2024 contract arbitrage between the London and New York markets widened yesterday, to register this at 32.87 Usc/Lb. This equates to 14.41% price discount for the London Robusta coffee.

It was a mixed but overall firmer day on the commodity markets yesterday, ahead of key US macroeconomic data that is due out later today, which led to some degree of volatility in the US Dollar. The Coffee, Corn, Cocoa, Wheat, Gold, Silver and Platinum markets ended the day on a positive note, while the Sugar, Soybean and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.250 Sterling, at 1.072 the Euro and with the US Dollar buying 5.159 Brazil Real.

The New York market started the day trading to the north of par on a firmer note, whilst the London market started the day yesterday trading to the south of par, this early start saw both markets pressured lower during the session to accentuate the losses in very light volumes of trade. Both markets attracted buying support during the late morning session to track mildly firmer for the remainder of the morning session, gaining momentum, as support was seen to build. As the afternoon progressed the New York and London markets continued to trend in a firmer direction, as trade volume began to pick up, the markets hit a ceiling to limit the gains for the day with sellers returning to the floor. This saw the New York and London markets drop back from the earlier highs. The London market dropped back from the highs of the day late in the session to settle on a firmer note with some of the gains intact, while the New York market settled on a likewise firmer note at the close, albeit back from the highs of the day.

The London market ended the on a positive note with 52.77% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note, with 36.97% of the earlier gains of the day intact. This firmer close for the markets, might provide some degree of support and direction, albeit that the New York and London markets fell back from the highs of the day during the session, under light volumes of trade, to possibly see the markets set for a follow through hesitant steady start to early trade today, against the prices set yesterday, as follows:

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

JUL     4304 + 38                                          JUL     228.10 + 2.20
SEP     4215 + 34                                          SEP     226.30 + 2.05
NOV   4103 + 48                                          DEC    224.45 + 1.85
JAN    3975 + 63                                          MAR   223.60 + 1.70
MAR  3893 + 63                                          MAY    222.35 + 1.65
MAY  3840 + 60                                          JUL      220.90 + 1.50
JUL    3770 + 60                                          SEP      218.70 + 1.45
SEP    3771 + 60                                          DEC    216.40 + 1.35