Coffee Market Report

The latest Commitment of Traders report from the New York arabica coffee market has seen the Non-Commercial Speculative sector of this market increase their net short sold position within the market by 20.07% during the week of trade leading up to Tuesday 5th September, to register a net short sold position of 31,655 Lots on the day. This net short-sold position which is the equivalent of 8,974,192 bags has most likely been marginally decreased following the period of mixed but overall steadier trade, which has since followed.

The November to December contracts arbitrage between the London and New York markets broadened yesterday, to register this at 41.74 usc/Lb., while this equates to 31.95% 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 3,025 bags on Friday; to register these stocks at 1,751,750 bags. There was meanwhile an increase at 18,349 bags in the number of bags pending grading for this exchange; to register these pending grading stocks at 79,082 bags.

The commodity markets had a mixed day on Friday, the U.S. Dollar trending softer while the euro built on gains, while the Oil markets slipped back on the day. It was a firmer day for Cocoa, Cotton, Orange Juice, Coffee, Sugar, Wheat and Corn, a steady day for Gold, and a lower day for Silver, Platinum, Palladium and Copper. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.006% lower, to see this Index registered at 411.33. The day starts with the U.S. Dollar steady and trading at 1.316 to Sterling and at 1.20 to the Euro, while North Sea Oil is steady and is selling at $ 54.65 per barrel.

It was a lower start for the coffee markets on Friday, with New York posting a recovery to above par in the early morning session and London, gradually following suit. The midsession saw both markets in positive territory, New York touched the high of the day although quickly capped, to see the market fall back slightly but maintain a positive stance, the rest of the day within a narrow and steady range. London spent much of the day marginally above unchanged and in a narrow and relatively limited volume day, this market took a more positive track toward the very end of the trading day on Friday, touching upon the highs at the end of the session, although modestly shedding value as the day drew to a close. Thus, the markets finished the day near to the highs in both markets after a strong day in volume terms for New York and a thinner session in London, on a buoyant note, as follows:

LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.

SEP     1979 + 6                          SEP   129.40 + 1.50
NOV   1960 + 10                        DEC  130.65 + 1.50
JAN    1944 + 5                          MAR 134.15 + 1.50
MAR  1940 + 4                          MAY 136.45 + 1.50
MAY  1949 + 4                          JUL   138.80 + 1.50
JUL    1978 + 4                          SEP   141.05 + 1.50
SEP    1987 + 4                          DEC  144.35 + 1.50
NOV  1998 + 7                          MAR 147.55 + 1.50
JAN    2009 + 8                         MAY 149.60 + 1.55
MAR 2014 + 8                          JUL   151.50 + 1.50