Coffee Market Report

The Certified washed Arabica coffee stocks held against the New York arabica market were seen to increase by 13,971 bags yesterday, to register these stocks at 735,694 bags, with 99.24% of these certified stocks being held in, Europe at a total of 730,105 bags and the remaining 0.76% being held in the USA at a total 5,589 Bags. Of this, a total 355,293 bags, or 48.29% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 16.98% of these certified coffees, originating from Honduras. The pending grading stocks were seen to decrease by 16,675 bags; to register 65,704 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 45.13 Usc/Lb. This equates to 22.47% price discount for the London Robusta coffee.

It was a firmer day on the commodity markets yesterday, with US Dollar was weaker on the day, with the leading in influence Oil markets firmer on the day. A weaker US Dollar is seen to be a bullish factor for commodities traded in other currencies. The Coffee, Cocoa, Sugar, Gold, Silver, Palladium and Platinum markets ended the day on a positive note, while the Corn, Soybean and Wheat markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.258 Sterling, at 1.082 the Euro and with the US Dollar buying 5.129 Brazil Real.

The New York market started the day yesterday trading on a firmer note, whilst the London market started the day trading to south of par on a modest softer note. Both the New York and London markets dropped back during the early morning session, pressured lower by selling in the market. The markets continued to trade in negative territory for the remainder of the morning session before attracting some degree of buying support to reverse the trend and attracted support. As the afternoon progressed, the New York and London markets started to gain momentum, with both markets moving in a positive direction accentuating the gains for the day, under relatively modest volumes for the day. The upward momentum brought sellers back to the floor at the top of the day, and both New York and London markets hit a ceiling very late in the day to marginally limit the sessions gains. The New York market settled near to the highs of the day on a firm note, while the London market followed suit to likewise settle on a very firm note, near to the highs of the day.

The London market ended the day on a positive note with 80.95% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note, with 86.49% of the earlier gains of the day intact. This firm close for the markets, with both the New York and London markets tracking upward throughout the session to settle near to the highs, could possibly see the markets set for a follow through steady start to early trade today, against the prices set yesterday, against the prices set yesterday, as follows:

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

JUL      3433 + 34                                       JUL       200.85 + 4.80
SEP      3364 + 38                                       SEP       199.90 + 4.65
NOV    3292 + 36                                       DEC      199.05 + 4.55
JAN      3204 + 38                                      MAR      198.45 + 4.45
MAR    3125 + 38                                       MAY      198.15 + 4.55
MAY    3066 + 35                                       JUL        198.00 + 4.65
JUL      3008 + 35                                       SEP        197.70 + 4.65
SEP      2943 + 35                                       DEC       197.50 + 4.70