Market Reports

With the current Brazilian harvest nearly complete, weather reports suggest that mild conditions will continue through September, with rains expected to pick up in the days ahead. Forecasters indicate that increased sporadic rainfall should reach parts of the coffee belt during the first weeks of September. These seasonal rains, which typically arrive around this time each year, are crucial for triggering flowering and setting the stage for the next crop.

The Certified washed arabica coffee stocks held against the New York exchange were seen to decrease by 606 bags yesterday, to register these stocks at 224,011 bags, with 74.09% of these certified stocks held in Europe, at a total of 165,963 and the remaining 25.91% being held in the USA at a total 58,048 bags. Of this, a total 6,748 or 3.01% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 25.96% of these certified coffees, from Honduras at 58,157 bags and 22.19% from Peru at a total 49,721 bags. The pending grading decreased by 1,280 bags on the day, registering 640 bags pending grading.

The London Robusta Market will be closed on Monday, as the UK celebrate their Summer Bank Holiday, leaving the New York market to trade solo for the day.

The November 2026 to December 2026 contract arbitrage between the London and New York markets narrowed yesterday, to register this at 148.40 Usc/Lb. This equates to a 47.93% price discount for London robusta coffee.

It was a mixed but overall firmer day on the commodity markets yesterday, on the back of a weaker US Dollar while markets await the US Federal Reserve Chair’s speech on interest rate trajectory tomorrow. The Cocoa, Soybean, Sugar, Wheat, Gold, Silver, Platinum and Palladium markets ended the day on a firmer note, while the Coffee and Corn markets ended the day on a softer note. The day starts with the US Dollar trading at 1.359 Sterling, at 1.164 to the Euro and with the US Dollar buying 5.163 Brazil Real.

The London market opened the day on a softer note yesterday, followed by New York on a modest near to unchanged note at the start of the day. The direction in London was set early, to see the London market drop back and track lower during the early morning session. The New York market continued to trade on negative territory for the remainder of the morning session.  The activity in both markets was modest as the morning progressed with New York finding support to recover from the early lows, the London market followed suit to likewise recover from the early lows before encountering sustained resistance to reverse the trend and track lower. As the afternoon progressed both the London and New York markets continued to trade below par, as selling pressure increased. The London market traded in softer territory for the remainder of the days’ session, before finding support near to the lows of the day. The New York market was also seen to trade back towards par during the late afternoon session. This support continued through to the close, with the New York market trading back towards par to settle on a softer note at the close with more than half of the earlier losses of the day intact. The London market was seen to settle on a softer note at the close, with less than half of the earlier losses of the day intact.

The London market ended the day on a negative note, with 59% of the earlier losses of the day intact, while the New York market likewise ended the day on a likewise negative note with 79.62% 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