Coffee Market Report
| The latest Commitment of Traders report from the New York arabica coffee market has seen the shorter term in nature Managed Money fund marginally decrease their net long position by 0.86% within this market over the week of trade leading up to Tuesday 24th. September 2024; to register a new long position at 60,925 Lots. The longer term in nature, Index Fund sector of this market marginally increased their net long position by 0.82% within the market, to register a new net long position of 52,716 Lots on the day.
Over the same week, the Non-Commercial Speculative decrease their net long position by 4.54% within the market over the week of trade leading to Tuesday 24th. September 2024: to register a new net long position of 41,649 lots, which is the equivalent of 11,807,307 bags. This net long position has most likely been increased marginally following the period of overall firmer trade that has since followed. The National Coffee Institute of Costa Rica (ICAFE) have reported that the country’s coffee exports for the month of August were 22,144 bags or 24.74% higher than the same month last year, at a total of 111,662 bags. This they say has contributed to the cumulative coffee exports for the first eleven months of the current October 2023 to September 2024 coffee year to be 0.23% lower than the same period in the previous year, at a total of 921,507 bags. The National Coffee Institute of Costa Rica ICAFE, have estimated production for the October 2024 to September 2025 coffee year will total 1.37 million bags or around 5.50% higher than the current coffee year. The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 4,184 bags yesterday, to register these stocks at 813,999 bags, with 97.86% of these certified stocks held in Europe at a total of 796,585 and the remaining 2.14% being held in the USA at a total 17,414 Bags. Of this, a total 388,421 bags, or 47.77% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 14.70% of these certified coffees, from Honduras. The pending grading stocks were seen to increase by 429 bags to register 52,160 bags pending grading on the day. The November 2024 to December 2024 contract arbitrage between the London and New York markets widened yesterday, to register this at 20.86 Usc/Lb. This equates to 7.71% price discount for the London robusta coffee. It was a mixed but overall softer day on the commodity markets yesterday. The Coffee, Corn, Soybean and Wheat markets ended the day on a firm note, while the Cocoa, Sugar, Gold, Silver, Platinum and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.337 Sterling, at 1.114 the Euro and with the US Dollar buying 5.450 Brazil Real. The New York and London markets started the day yesterday trading to the north of par, continuing the trend from the close of Friday, in comparatively light trade volumes. Both markets continued to attract buying support during the late morning session to track mildly firmer for the remainder of the morning session, before dropping back from the early highs as some degree of resistance came to the fore. As the afternoon progressed, the markets reversed the trend to gain support and trend in a firmer direction, as trade volume began to pick up, albeit still comparatively light, 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 to settle on a firmer note with only some of the earlier gains of the day intact, whilst the New York market dropped back from the earlier highs to settle on a modest firmer note at the close. The London market ended the day on a positive note with 37.21% of the earlier gains of the day intact, while the New York market ended on a likewise positive note, with 35.48% 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 London and New York markets fell back from the highs of the day during the session, to possibly see the markets set for a follow through steady start to early trade today, against the prices set yesterday, as follows: LONDON ROBUSTA US$/MT NEW YORK USC/LB. NOV 5498 + 16 DEC 270.25 + 1.10 |
