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 increase in their net long position by 4.35% over the week of trade leading up to Tuesday 28thJanuary 2025; to register a new long position at 65,621 Lots. The longer term in nature, Index Fund sector of this market decreased their net long position by 0.90% within the market, to register a new net long position of 37,897 Lots on the day.

Over the same week, the Non-Commercial Speculative sector increased their net long position by 4.72% within the market over the week of trade leading to Tuesday 28th January 2025: to register a new net long position of 53,463 lots, which is the equivalent of 15,156,524 bags. This net long position has most likely been increased further following the period of mixed but overall firmer trade that has since followed.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 1,224 bags yesterday, to register these stocks at 854,953 bags, with 97.54% of these certified stocks held in Europe, at a total of 833,927 bags and the remaining 2.46% being held in the USA at a total 21,026 Bags. Of this, a total 540,877 bags or 63.26% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 10.70% of these certified coffees, from Peru. The pending grading stocks posted an increase by 10,908 bags on the day, to register 135,770 bags pending grading on the day.

The March 2025 to March 2025 contract arbitrage between the London and New York markets widened yesterday, to register this at 131.44 Usc/Lb. This equates to 34.27% price discount for the London robusta coffee.

It was an overall firmer day on the commodity markets yesterday, e Coffee, Corn, Sugar, Wheat, Soybean, Gold, Silver, and Platinum markets ended the day on a firmer note, while the Palladium, and Cocoa markets ended the day on a negative note. The day starts with the U.S. Dollar trading at 1.248 Sterling, at 1.039 the Euro and with the US Dollar buying 5.758 Brazil Real.

The London market ended the day on a positive note with 18.04% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note, with 27.22% of the earlier gains of the day intact. This positive close for the markets, to maintain only some of the earlier gains of the day, with the US Dollar trending firmer on the day, might see the markets due for a mildly positive hesitant opening in early trade today, against the prices set yesterday, as follows:

LONDON ROBUSTA US$/MT                 NEW YORK USC/LB.

MAR      5558 + 24                                     MAR     383.35 + 2.45
MAY      5548 + 28                                     MAY      377.40 + 3.05
JUL        5481 + 28                                     JUL        369.35 + 3.15
SEP        5391 + 27                                     SEP        359.60 + 3.45
NOV      5302 + 26                                     DEC       343.90 + 3.15
JAN       5212 + 26                                     MAR      331.70 + 2.75
MAR     5128 + 23                                     MAY      316.80 + 2.60
MAY     5064 + 23                                     JUL        300.10 + 2.20