Coffee Market Report
| The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector increase their net long position by 11.59% within the market over the week of trade leading to Tuesday 20th. August 2024: to register a new long position of 43,474 lots, which is the equivalent of 12,324,686 bags. This net long position has most likely been little changed following the period of mixed trade that has since followed.
The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Managed Money Sector increase their net long position by 5.83% within the market over the week of trade leading to Tuesday 20th. August 2024: to register a new net long position of 31,348 Lots which is the equivalent of 5,224,667 bags. This net long position has most likely been increased further following the period of mixed but overall firmer trade that has since followed. The London Robusta Market is closed today as the UK celebrate their Summer Bank Holiday, leaving the New York market to trade solo for the day. The Certified washed arabica coffee stocks held against the New York arabica market were seen to increase by 5,978 bags on Friday, to register these stocks at 844,145 bags, with 98.15% of these certified stocks held in, Europe at a total of 828,502 bags and the remaining 1.85% being held in the USA at a total 15,643 Bags. Of this, a total 408,445 bags, or 48.39% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 13.68% of these certified coffees, from Honduras. The pending grading stocks were seen to decrease by 741 bags; to register 28,585 bags pending grading on the day. The November 2024 to December 2024 contract arbitrage between the London and New York markets narrowed on Friday, to register this at 33.43 Usc/Lb. This equates to 13.52% price discount for the London robusta coffee. It was an overall firmer day on the commodity markets on Friday, with the US Dollar softening by 0.80% against a basket of other currencies, a weaker Dollar is traditionally seen to be a bullish factor for commodities traded in other currencies. The Coffee, Cocoa, Sugar, Soybean, Gold, Silver, Platinum and Palladium markets ended the day on a firmer note, while the Corn and Wheat markets ended the day on a negative note. The day starts with the U.S. Dollar trading at 1.320 Sterling, at 1.118 the Euro and with the US Dollar buying 5.486 Brazil Real. The New York and London markets started the day on Friday trading to the south of par on a modest softer note respectively. Both markets continued to oscillate to either side of par, before attracting a modest degree of selling pressure to trade below par. The markets reversed this trend during the mid-morning session, in a comparatively quiet volume morning. Both the New York and London markets were seen to build support as the day progressed. 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 gains throughout the afternoon session. The London market continued the upward momentum before being capped very late in the day, with open interest registering at 8,404 lots ahead of first notice day on the prompt month tomorrow, to see the market marginally drop back and settle on a very firm note at the close. The New York market followed suit to settle on a very firm note at the close, with most of the earlier gains of the day intact. The London market ended the day on a positive note with 91.56% of the earlier gains of the day intact, while the New York market ended on a likewise positive note, with 91.67% of the earlier gains of the day intact. This follow through firm close for the markets, might indicate some degree of support and direction with both the New York and London market gaining momentum throughout the session to settle near to the highs of the day albeit in modest volumes of trade. One might therefore think that the New York market trading solo on the day will be set for another hesitant steady start to early trade today, against the prices set on Friday, as follows: LONDON ROBUSTA US$/MT NEW YORK USC/LB. SEP 5128 + 225 DEC 247.30 + 4.40 |
