Coffee Market Report
| The Green Coffee Association of the U.S.A. have announced that port warehouse coffee stocks registered an increase of 118,367 bags or 1.62% during the month of July, to register these stocks at 7,413,312 bags at the end of the month. This is noted to be the eighth consecutive month of an increase being reported to these stocks, which do not include the transit bulk container coffees or the onsite roaster inventories. Thus, with the approximate combined North American weekly consumption that is supported by these stocks at an estimated 560,000 bags per week would have been at least 1.1 million bags, would equate to approximately 15 weeks of roasting activity, which may be considered to be more than sufficient cover in reserve inventory.
The November to December contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 42.42 usc/Lb., while this equates to a 31.30% price discount for the London Robusta coffee market. The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 8,592 bags yesterday; to register these stocks at 1,593,037 bags. There was meanwhile a decline in the number of bags pending grading for this exchange by 8,900 bags; to register these pending grading stocks at 100,366 bags. It was a lower day overall for the commodity markets yesterday, as the tensions in the Pacific would appear to have subsided for the moment, while a fresh round of economic data in strong retails sales within the U.S.A., were positively received by the markets. The U.S. Dollar continued to gain momentum against a basket of other major currencies, while speculative investor attention will turn to the U.S. Federal Reserve Bank July meeting and minutes, to be released later today. A softer day ensued for the Oil markets, Cocoa, Coffee, Corn, Cotton, Copper, Sugar, Soybeans, Wheat, Gold, Silver, Platinum and Palladium, the only positive gainer on the day was Orange Juice. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 1.33% lower, to see this Index registered at 397.32. The day starts with the U.S. Dollar steady and trading at 1.287 to Sterling and at 1.174 to the Euro, while North Sea Oil is steady and is selling at $ 50.41 per barrel. The coffee markets started the day yesterday on a mildly softer note and in muted volume in early morning trade. The London robusta market briefly breaking thorugh par into positive territory early on. As the morning progressed, technical spread activity held sway as first notice day in the prompt month in New York approaches mid next week, while the softer overall day in the commodities sector and firmer U.S. Dollar contributed toward the downward track that was set in both markets. Although with a degree of resistance noted within the London robusta market and underlying buyer support assisted to stagger the slide, the continuation of downward track in New York in the afternoon saw resistance wane and sellers return to the floor toward the latter half of the day in London. It was a busy day in volume terms for both markets, which set the close near to the lows of the day yesterday, as follows: LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb. SEP 2057 – 48 SEP 132.00 – 4.95 |
