Coffee Market Report
The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 14,539 bags yesterday, to register these stocks at 849,553 bags, with 97.87% of these certified stocks held in Europe at a total of 831,499 and the remaining 2.13% being held in the USA at a total 18,054 Bags. Of this, a total 403,851 or 47.54% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 15.97% of these certified coffees, from Nicaragua. The pending grading stocks were seen to decrease by 17,747 bags on the day, to register 110,355 bags pending grading on the day.
The Certified robusta coffee stocks held against the London Exchange reported a decrease by 9,167 bags, during the week leading up to the 28th October 2024, to register a total 660,833 bags being held in northern hemisphere consumer country warehouses.
The December 2024 to January 2025 contract arbitrage between the New York and London markets narrowed yesterday, to register this at 47.62 Usc/Lb. This equates to 19.08% price discount for the London robusta coffee.
It was a mixed but overall firmer day on the commodity markets yesterday, with the leading in influence Oil markets firmer on the day. The Coffee, Cocoa, Sugar, Wheat, Soybean and Gold markets ended the day on a firm note, while the Corn, Silver, Platinum and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.296 Sterling, at 1.085 the Euro and with the US Dollar buying 5.762 Brazil Real.
The New York and London markets started the day yesterday in muted volume, trading on a firmer note. The London market quickly gained momentum gapping higher at the outset of the early morning session, in limited volume. The New York market was slower to react and having set a higher level, traded either side of par 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 New York market continued the upward momentum before being capped very late in the day, to see the market drop back and settle on a firm note at the close, with more than half of the earlier gains of the day intact. The London market was seen to also settle on a 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 71.43% of the earlier gains of the day intact, while the New York market ended on a likewise positive note, with 61.22% of the earlier gains of the day intact. This follow through firmer close might see the markets set for a steady start to early trade today, albeit that the markets dropped back from the highs of the day during the session to settle with most of the earlier gains of the day intact, against the prices set yesterday, as follows:
LONDON ROBUSTA US$/MT NEW YORK USC/LB.
JAN 4453 + 55 DEC 249.60 + 1.50
MAR 4363 + 51 MAR 249.05 + 1.80
MAY 4296 + 52 MAY 247.80 + 1.95
JUL 4218 + 48 JUL 245.30 + 2.05
SEP 4151 + 48 SEP 242.20 + 2.15
NOV 4099 + 47 DEC 237.30 + 2.35
JAN 4029 + 47 MAR 233.25 + 2.50
MAR 3970 + 47 MAY 229.75 + 2.45
