Coffee Market Report
The International Coffee Organization ICO have reported that following the 50th G7 Summit held in Italy last week, which saw leaders from Canada, France, Germany, Italy, Japan, the UK and the USA alongside members from the European Commission gather to discuss global issues such as climate change, macro-economic factors and international relations, that the discussions acknowledged the challenges faced by the coffee sector and advocated for a public-private partnership initiative designed to foster sustainable, resilient, circular, and regenerative coffee value chains. This proposal, which will be presented at the next G7 meeting in October this year, aims to advance policy, investment, research, innovation and partnerships to boost sustainability, value addition and resilience within the global coffee value chain.
The Certified washed Arabica coffee stocks held against the New York arabica market were seen to remain unchanged yesterday, as the exchange was closed for the Juneteenth holiday, to register these stocks at 824.416 bags, with 99.08% of these certified stocks held in, Europe at a total of 816,867 bags and the remaining 0.92% being held in the USA at a total 7,549 Bags. Of this, a total 426,874 bags, or 51.78% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 15.76% of these certified coffees, originating from Honduras. The pending grading stocks were seen to decrease by 7,001 bags; to register 37,084 bags pending grading on the day.
The September 2024 to September 2024 contract arbitrage between the London and New York markets narrowed yesterday, to register this at 42.09 Usc/Lb. This equates to 18.60% price discount for the London Robusta coffee.
The commodity markets lacked the participation of many of the U.S.A based markets yesterday, which were closed due to the Juneteenth holiday on Monday the 19th June, to provide no direction for the overall macro commodity index for the day. The London Robusta Coffee, Cocoa, Sugar, Gold, Silver, Palladium and Platinum markets ended the day on a positive note. The day starts with the U.S. Dollar trading at 1.271 Sterling, at 1.074 the Euro and with the US Dollar buying 5.423 Brazil Real.
The London market trading solo yesterday started the day trading on a modest firmer note, the market quickly gained momentum supported in early trade some degree of buoyancy to see the market continue on a firmer path for the remainder of the morning session. As the afternoon progressed the London market fell back from the highs of the morning, weighed lower by a degree of selling pressure in the market. This was short lived as the market found support near to the lows of the day to see the London market move higher under good volumes of trade for the day. The market was seen to settle near to the highs of the day at the close, maintaining most of the earlier gains of the day.
The London market ended the day yesterday on a positive note with 72.53% of the earlier gains of the day intact, while the New York market ended the day on Tuesday on a negative note, with 24.71% of the earlier losses of the day intact. This firmer close for the London market trading solo on the day, might inspire some degree of follow through momentum and one might think that the markets are due for a steady start to early trade today, against the prices set on Tuesday in New York and yesterday in London, as follows:
LONDON ROBUSTA US$/MT NEW YORK USC/LB.
Close: 19/06/2024 Close: 18/06/2024
SEP 4060 + 66 SEP 226.25 – 1.05
NOV 3889 + 37 DEC 224.85 – 1.20
JAN 3731 + 27 MAR 223.70 – 1.05
MAR 3644 + 28 MAY 222.10 – 1.00
MAY 3586 + 30 JUL 220.60 – 1.05
JUL 3531 + 34 SEP 219.00 – 1.05
SEP 3448 + 39 DEC 217.25 – 1.15
NOV 3403 + 39 MAR 215.75 – 1.15
