Market Reports

The weather forecasters are indicating sporadic rainfall across the vast regions of the Brazil coffee growing areas for the remainder of this week, a relatively normal forecast as this largest producer country heads towards the seasonal drier winter months to come.  The Brazil Real has strengthened by 6.29% since the beginning of the year.  The Brazil Real strength to the US Dollar can traditionally discourage selling activity within the interior of Brazil, one might also comment that producers are relatively well financed and continue to take a measured stance, with the prevailing Brazil coffee export year drawing to a close soon, and the new robusta harvest soon to begin in the Conilon areas, to be followed mid-year by the arabica harvest.

Due to holidays being observed in most of the mainstream consumer markets, the London market shall be closed today and again on Monday, while the New York market shall be closed today and to trade solo and for a shortened trading day on Monday.

The Certified washed Arabica coffee stocks held against the New York exchange increased by 1,797 bags yesterday, to register these stocks at 547,667 bags, with 74.89% of these certified stocks held in Europe, at a total of 410,159 and the remaining 25.11% being held in the USA at a total 137,508 bags. Of this, a total 25,826 or 4.72% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 25.47% of these certified coffees, from Honduras at 139,465 bags and 13.61% from Nicaragua at a total 74,534 bags. The pending grading stocks decreased by 6,282 bags on the day, registering 26,319 bags pending grading, the majority origins pending grading Honduras and with washed Uganda a tenderable quality, this adds up to 57.45% of the total.  

The May 2026 to May 2026 contract arbitrage between the London and New York markets widened yesterday, to register this at 139.01 Usc/Lb. This equates to 47.07% price discount for London robusta coffee.

It was a mixed day the commodity markets yesterday, following strength in the US Dollar and a firmer Oil market with tensions rising in the Middle East. The Sugar, Wheat, Palladium and Platinum markets ended the day on a firmer note, while the Coffee, Cocoa, Corn, Soybean, Gold and Silver markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.322 Sterling, at 1.153 to the Euro and with the US Dollar buying 5.157 Brazil Real.

The London market started the day yesterday trading on a firmer note, while the New York market started the day trading to the south of par on a modest near to unchanged softer note. The markets gained support and momentum early to set a new high for the day. The support begun to taper off through the remainder of the morning session, with the markets trending back through par and into softer territory, settling into a range. As the afternoon progressed, the markets continued to trade in modest softer territory before encountering resistance to drop back from the early highs. Late in the day, a small degree of speculative long liquidation followed, to see both the New York and London markets drop and set a new low for the day. As the session progressed and the activity increased, albeit in modest terms, the markets found support near to the lows of the day to recover from the earlier losses whilst trading below par and in negative territory. The New York market settled on a softer note at the close with less than half of the earlier losses of the day intact, whilst the London market settled on a likewise softer note at the close with only some of the earlier losses of the day intact.

The London market ended the day on a negative note, with 85.88% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note, with 43.24% of earlier losses of the day intact. This softer close for the markets, does little to inspire confidence, albeit that the markets recovered from the lows of the day during what was a choppy session. The New York and London markets are closed today with the New York market resuming trade on Monday and the London market on Tuesday. The prices set yesterday, are as follows: