Coffee Market Report
| Insert Content HereThe latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Managed Money Sector increase their net long position by 10.29% within the market over the week of trade leading to Tuesday 26th November 2024: to register a new net long position of 24,421 Lots which is the equivalent of 4,070,167 bags. This net long position has most likely been increased further following the period of overall firmer trade that has since followed.
The latest Commitment of Traders report from the New York arabica market will be released later today, due to the Thanksgiving holiday observed last week, on the 28th of November 2024. The National Coffee Institute of Costa Rica (ICAFE) have reported that the country’s coffee exports for the month of October were 16,877 bags or 79.29% higher than the same month last year, at a total of 38,162 bags. The National Coffee Institute of Costa Rica ICAFE, have estimated production for the October 2024 to September 2025 coffee year will total 1.31 million bags or around 13.40% higher than the previous coffee year. There have been reports for a potential reduction of the estimate and production figures for the harvest that is currently underway, following the subsequent hurricane season that has swept across Central American countries and the Gulf of Mexico. The Certified washed Arabica coffee stocks held against the New York exchange decreased by 3,000 bags on Friday, to register these stocks at 900,548 bags, with 98.11% of these certified stocks held in Europe, at a total of 883,454 bags and the remaining 1.89% being held in the USA at a total 17,094 Bags. Of this, a total 502,300 bags or 55.78% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 12.91% of these certified coffees, from Nicaragua. The pending grading stocks posted an increase by 21,345 bags on the day, to register 78,182 bags pending grading on the day. The January 2025 to March 2025 contract arbitrage between the London and New York markets widened on Friday, to register this at 72.70 Usc/Lb. This equates to 22.86% price discount for the London robusta coffee. It was an overall firmer day on the commodity markets on Friday, with the US Dollar losing ground against a basket of other currencies, a softer Dollar is seen to be a bullish factor for commodities traded in other currencies. The Cocoa, Corn, Soybean, Gold, Silver, Palladium and Platinum markets ended the day on a firm note, while the Coffee, Sugar and Wheat markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.274 Sterling, at 1.058 the Euro and with the US Dollar buying 5.973 Brazil Real. The New York market started the day on Friday trading to the north of par on a very firm note, while the London market started the day trading to the south of par on a modest softer note. Both markets were seen to attract a large degree of buying support early in the day to see the markets make significant gains early in the day. Both New York and London hit a ceiling before to register an increase in selling pressure as the exceptionally volatile week drew to a close. The Brazil Real registered a softer day, to release some selling activity. The lower momentum met with underlying buy orders to set the floor and curtail further wide swings in direction toward the end of the days’ trade. The markets marginally recovered some of the earlier losses of the day, in limited volumes of trade for both the New York and London markets, to settle near to the lows of the day, on a soft note at the close. The London market ended the day on a negative note with 91.76% of the earlier losses of the day intact, while the New York market ended the day a likewise negative note, with 80% of the earlier losses of the day intact. This softer close, with both the New York and London markets settling near to the lows of the day with most of the earlier losses intact, might lead one to think that the markets are due for a follow through steady start to early trade today, against the prices set on Friday, as follows: LONDON ROBUSTA US$/MT NEW YORK USC/LB. JAN 5409 – 156 MAR 318.05 – 5.00 |
