Coffee Market Report
| The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector decrease their net long position by 2.50% within the market over the week of trade leading to Tuesday 26th November 2024: to register a new long position of 39,726 lots, which is the equivalent of 11,262,145 bags. This net long position has most likely been decreased following the period of overall softer trade that has since followed.
The Certified washed Arabica coffee stocks held against the New York exchange were seen to remain unchanged yesterday, 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 were seen to remain unchanged 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 yesterday, to register this at 76.79 Usc/Lb. This equates to 25.93% price discount for the London robusta coffee. It was an overall softer day on the commodity markets yesterday, with the US Dollar gaining 0.7% against a basket of other currencies, a firmer Dollar is traditionally seen to be a bearish factor for commodities traded in other currencies. The Palladium and Platinum markets ended the day on a firm note, the Sugar market remained unchanged on the day, while the Coffee, Cocoa, Corn, Soybean, Wheat, Gold and Silver markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.264 Sterling, at 1.048 the Euro and with the US Dollar buying 6.058 Brazil Real. The New York and London markets started the day yesterday trading to the north of par in modest firmer territory. The early morning session posted a lower track in thin volume and the market responded with light liquidation in both New York and London, to trade in negative territory to set a new lower range, by midsession. As the afternoon progressed, the ceiling tested and lacking upward momentum, a sequence of technical liquidation entered to see speculative sellers return in volume to the floor to trigger stops along the way. The London market followed suit, and the markets continued to track lower with a large degree of speculative long liquidation to accentuate the losses for the day’s trade. As the day progressed to the close selling activity started to wane toward the end of the days’ trade, to see the London market narrowly recover some of the earlier losses of the day, while the New York market was also seen to recover off of the lows of the day during the late afternoon session to settle on a softer note at the close, with most of the earlier losses of the day intact. The London market ended the day on a very negative note with 97.62% of the earlier losses of the day intact, while the New York market ended the day a likewise very soft note, with 91.67% of the earlier losses of the day intact. This very soft close for the markets and with both the New York and the London markets retaining most of the earlier losses to settle near to the lows of the day, as the markets were seen to encounter a large degree of selling pressure, might lead one to think that the markets are due for a hesitant start to early trade today, against the prices set yesterday, as follows: LONDON ROBUSTA US$/MT NEW YORK USC/LB. JAN 4834 – 575 MAR 296.05 – 22.00 |
