Market Reports

Today is International Coffee Day, this day was officially declared by the International Coffee Organisation on the 1^st October 2015 and is celebrated throughout the world. The day aims to promote fairtrade and education in coffee as well as highlight the appreciation for coffee farmers around the globe.

The Swiss Coffee Trade Association SCTA Forum and Dinner hosts it 17^th edition starting today and continuing through tomorrow in Montreux, Switzerland. This event traditional brings the global coffee community together to explore leadership and performance amid a rapidly evolving geopolitical and economic context, under this year’s theme of Performance Unlocked: Winning and Leading in the New Coffee Economy.

The Certified washed arabica coffee stocks held against the New York arabica market registered an increase of 4,933 bags yesterday, to register these stocks at 260,654 bags, with 79.80% of these certified stocks held in Europe, at a total of 208,009 bags and the remaining 20.20% being held in the USA at a total 52,645 bags. Of this, a total 66,657 or 25.57% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil semi-washed arabica, and a further 19.19% of these certified coffees, from Honduras at 50,017 bags and 17.80% from Peru at a total 46,390 bags. The pending grading decreased by 7,231 bags on the day, registering 12,202 bags pending grading.

The November 2026 to December 2026 contract arbitrage between the London and New York markets narrowed yesterday, to register this at 134.44 Usc/Lb. This equates to a 46.25% price discount for London robusta coffee.

It was a mixed but overall softer day on the commodity markets yesterday, with better than expected US inflation data reducing expectations for an immediate interest rate cut, with the US Dollar softer on the day following this economic data. The Coffee and Palladium and markets ended the day on a firmer note, while the Cocoa, Corn, Soybean, Sugar, Wheat, Gold, Silver and Platinum markets ended the day on a softer note. The day starts with the US Dollar trading at 1.325 Sterling, at 1.132 to the Euro and with the US Dollar buying 5.184 Brazil Real.

The London and New York markets started the day yesterday in muted volume, trading on modest firmer notes respectively. The trend was quickly affirmed in London to see the market gain momentum and trend firmer during the early morning session.  The New York market was slower to react and having set a higher level, traded either side of par in a comparatively quiet volume morning.  Both the New York and London markets were seen to build support as the day progressed.  The arrival of the America’s at the start of their business day pushed New York higher, triggering buy stops along the way to accentuate the gains for the day, this assisted to trigger speculative short covering which saw the New York market gain ground quickly throughout the afternoon session, with the London market following suit to make gains throughout the afternoon session. The New York market continued the upward momentum before being capped during the afternoon session to limit the day’s gains. The market dropped back to settle on a firmer note, with only some of the earlier gains of the day intact. The London market was seen to also settle on a firm note at the close, with less than half of the earlier gains of the day intact.

The London market ended the day on a positive note, with 24.48% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note with 13.37% of earlier gains of the day intact. This firmer close might see the markets set for a steady start to early trade today, albeit that the markets dropped back from the highs of the day during the session to settle on modest firmer notes at the close and one might think that the markets are due for a follow through hesitant steady start to early trade today, against the prices set yesterday: