Coffee Market Report
The July on July contracts arbitrage between the London and New York markets widened yesterday, to register this at 54.08 Usc/Lb., while this equates to a 43.33% price discount for the London robusta coffee market. This arbitrage remaining relatively attractive to roasters in comparison to arabica coffee prices, with the good discount most likely due to remain in place for the foreseeable future, in line with steady robusta shipments out of Vietnam.
The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 1,423 bags yesterday; to register these stocks at 1,412,351 bags. The number of bags pending grading to the exchange remained the same; to register these pending grading stocks at 15,916 bags on the day.
It was another positive day on the commodity markets, the leading in influence Oil markets took a positive turn in the wake of press news from Russia of a possibility of an oil output agreement ahead of a producers meeting next week and boosted overall general sentiment. The US Dollar posted a recovery again other major currencies on the day. It was positive day for the Oil markets, Cocoa, Cotton, Copper, Wheat, Corn, Soybean, Gold, Silver, Platinum and Palladium. It was another softer day for Sugar and Orange Juice, Wheat and Corn markets on the day. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 1.29% higher to see this Index registered at 388.79. The day starts with a steady U.S. Dollar at 1.424 to Sterling and 1.135 to the Euro, while North Sea Oil is steady in early trade and is selling at 43.04 per barrel.
The coffee markets started the day yesterday on a positive track; with London performing relatively well at the outset and holding much of the gains for the first three quarters of the day. It was a choppier day in New York which set off in positive territory but with seller pressure coming in to cap the day and reverse the gains to slip back to negative territory by midmorning. The afternoon session in New York posted a recovery however as underlying buyer support took the market back into positive territory, where this market built upon the gains of the session to the close, to finish the day near the highs achieved. The London market did not fair quite as well toward midsession with lows quickly tested as buyer support gave way to higher volume selling, resistance seen at the lows however, to bring renewed confidence to the floor, to post a recovery toward the end of the day, and a finish near the middle of the days’ range in this market. The close yesterday in both markets in another good volume turnover day, set on the close in a positive range, as follows;
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
MAY 1559 + 11 MAY 124.60 + 1.25
JUL 1585 + 10 JUL 126.30 + 1.05
SEP 1600 + 10 SEP 127.95 + 1.05
NOV 1616 + 11 DEC 130.10 + 0.95
JAN 1631 + 9 MAR 132.05 + 0.95
MAR 1643 + 7 MAY 133.55 + 0.90
MAY 1661 + 5 JUL 134.80 + 0.80
JUL 1660 + 5 SEP 136.00 + 0.80
SEP 1700 + 5 DEC 137.65 + 0.70
DEC 1720 + 5 MAR 139.30 + 0.65
