Market Reports

The Certified washed arabica coffee stocks held against the New York arabica market registered a decrease of 5,060 bags yesterday, to register these stocks at 253,355 bags, with 77.51% of these certified stocks held in Europe, at a total of 196,369 bags and the remaining 22.49% being held in the USA at a total 56,986 bags. Of this, a total 48,020 or 18.95% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 21.45% of these certified coffees, from Honduras at 54,334 bags and 19.22% from Peru at a total 48,696 bags. The pending grading increased by 1,670 bags on the day, registering 25,355 bags pending grading.

The November 2026 to December 2026 contract arbitrage between the London and New York markets narrowed yesterday, to register this at 125.04 Usc/Lb. This equates to a 45.24% price discount for London robusta coffee.

It was a mixed day on the commodity markets yesterday, as expectations of additional interest rate hikes increase while other major central banks signal a similar pattern leading to strength in the US Dollar on the day. The Cocoa, Corn, Soybean, Sugar, Wheat, Silver, Palladium and Platinum markets ended the day on a firmer note, while the Coffee, Wheat and Gold markets ended the day on a softer note. The day starts with the US Dollar trading at 1.337 Sterling, at 1.146 to the Euro and with the US Dollar buying 5.111 Brazil Real.

The London market started the day yesterday trading on a modest firmer note, while the New York market started the day trading to the south of par on a modest softer note. The markets continued to trade around par for the remainder of the early morning session before the New York market found some degree of support to trend in a firmer direction, while the London market was pressured lower. The support was short lived in the New York market with a degree of resistance near the day’s highs. The New York market dropped back to trend through par and into softer territory. As the afternoon progressed, both markets continued on a softer path, setting a new low for the day during the mid-afternoon session.  The London market settled on a softer note at the close, with more than half of the earlier losses of the day intact, while the New York market also settled 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 negative note, with 66.29% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 65.60% 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 modest trade volume session, and one might think that the markets are due for a steady start to early trade today, against the prices set yesterday, as follows: