Coffee Market Report
3rd January, 2019.
The Brazil Trade Ministry has released the latest commodity export data for the month of December to confirm coffee exports for the month at 4,099,375 bags, an increase of 5.31% on that of the previous month, whereas this reflects an increase in year on year exports of 1,518,986 bags or 58.85% higher than the coffee export performance out of Brazil over the same month in December last year.
Over the week of trade leading up to Monday 31st December, the certified robusta coffee stocks held against the London Exchange, increased by 38,167 Bags or 2.08%, to register these stocks at 1,874,500 bags.
The March to March contracts arbitrage between the London and New York markets broadened on Monday, to register this at 30.10 usc/Lb., while this equates to 30.25% price discount for the London Robusta coffee market.
The Certified washed Arabica coffee stocks held against the New York exchange registered a decrease by 3,000 bags on Wednesday to register these stocks at 2,458,882 bags. There was no change in the number of bags pending grading for the exchange, to register these pending grading stocks at 55,388 bags.
It was an overall choppy day on the markets yesterday, the latest round of lower factory activity data released from China in combination with European manufacturing data and Brexit uncertainty, weighed in on the markets. It was a firmer day for the US Dollar against a basket of other currencies and a positive day in the Oil markets. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.51% lower; to see this index registered at 392.76. The day starts with the U.S. Dollar near to steady and trading at 1.254 to Sterling, at 1.136 to the Euro and with the dollar buying 3.789 Brazilian Real.
The coffee markets opened the day yesterday on a buoyant note in London and a softer note in New York, with both markets treading below par for the first half of the session. The test to the lows in New York met with a degree of resistance to see this market pushed up from the lows of the morning into positive territory heading into the afternoon. London had a limited volume day overall and this market similarly moved above par into the afternoon session. The latter day market in New York met with volume selling activity to see this market edge lower as the day drew to a close, to see this market finish the day, after a relatively fair volume day, at the low. The London market defied this course as the day drew to a close, to break par and back into positive territory, to finish after a low volume session, on the high of the day. The markets set the close yesterday, as follows:
JAN 1,512 + 6 DEC 99.50 – 2.35
MAR 1,530 + 5 MAR 102.65 – 2.30
MAY 1,548 + 4 MAY 105.45 – 2.35
JULY 1,563 + 4 JULY 108.25 – 2.35
SEPT 1,580 + 2 SEPT 112.05 – 2.30
NOV 1,598 + 1 DEC 115.85 – 2.30
JAN 1,616 + 1 MAR 118.25 – 2.35
MAR 1,637 Unch MAY 120.60 – 2.30
MAY 1,658 – 2 JULY 122.85 – 2.25
JULY 1,675 – 2 SEPT 126.05 – 2.30
