Coffee Market Report
| The European Coffee Federation have reported that the port ware house stocks held within the warehouses in the ports of Antwerp, Bremen, Hamburg, Genoa, Le Havre and Trieste rose by 291,017 bags or 2.35% during the month of June. to see these stocks registered at 12,369,034 bags as at the end of the month. These stocks do not however include the coffee stocks held within Europe in transit bulk containers, unreported warehouses throughout Europe, as well as on site roaster industry inventory stocks and with the combination of Eastern and Western European consumption at approximately 1 million bags per week, this would most likely be an additional estimated 2.5 million bags. It would therefore appear that European coffee stocks for the end of February would have been sufficient to cater for around 15 weeks of roasting activity.
The November to December contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 64.44 usc/Lb., while this equates to a 41.50% price discount for the London robusta coffee market. This arbitrage remaining relatively attractive to roasters in comparison to arabica coffee prices, continues to inspire support for the robusta coffee sector of the industry. The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 1,458 bags yesterday; to register these stocks at 1,263,187 bags. The number of bags pending grading for this exchange were unchanged on the day; to register these pending grading stocks at 14,604 bags. The commodity markets took a positive turn yesterday, subsequent to the U.S. Federal Reserve monetary policy announcements and a softer U.S. Dollar on the day. The oil markets finished on a firmer note, as did Cocoa, Copper, Orange Juice and robusta Coffee, with a flatter day for Soybean. The Sugar, Cotton, arabica Coffee, Wheat and Corn markets were mildly negative, but a boost on the back of the sliding U.S. Dollar prompted a positive close for Gold, Silver, Platinum and Palladium markets. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.49% higher; to see this Index registered at 426.37. The day starts with the U.S. Dollar steady in early trade and trading at 1.304 to Sterling and 1.119 to the Euro, while North Sea Oil is steady in buoyant in early trade and selling at 46.66 per barrel. The London market and New York markets started the day yesterday with a degree of follow through buoyancy which set both markets for an upside track for the morning session. The New York market rapidly surged into higher territory which in turn attracted fresh buyer activity to the floor, a similar move in London albeit at a steadier pace to touch upon the highs of the day around midsession. The positive sentiment across the overall commodities board steadied out into the afternoon and within the coffee markets, so too did the latest round of weather reports forecasting rain for the weekend ahead over the Brazil coffee growing areas, serve as a dampener to the speculative spirits, to see the second half of the trading day turn softer as speculative liquidation came to the fore with both markets taking a sharp downside track, where New York lost all the ground and into negative territory as the day drew to a close. The accelerated loss in New York was mirrored to a degree in London although this market managed to retain some of the gains of the day and although on the lower side of the trading range, nevertheless still a positive close in this market, to set the close yesterday after another good volume trading day in both markets, on a softer note in New York and a mildly buoyant note in London, as follows: LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb. SEP 1997 + 15 |
