Coffee Market Report
| The delayed 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 1.93% over the week of trade leading up to Monday 31st. December; to register a new net short sold position of 65,143 Lots. This net short position is the equivalent of 18,467,752 bags has most likely been little changed to perhaps marginally increased, following the mixed generally sideways trade which has since followed.
The May to May contracts arbitrage between the London and New York markets narrowed marginally yesterday, to register this at 37.20 usc/Lb., while this equates to 35.26% price discount for the London Robusta coffee market. The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 825 bags yesterday; to register these stocks at 2,476,953 bags. There was meanwhile a sizable increase in by 41,599 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 59,378 bags. The commodity markets had a mixed but overall positive day yesterday, most Asian markets not trading due to the New Year celebrations, while the US Dollar gained ground on the day. It was a positive day for Oil, Sugar, Cocoa, Cotton, Copper, Coffee, Orange Juice markets and a softer day for Wheat, Corn, Gold, Silver, Platinum and Palladium. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.155% higher; to see this index registered at 403.25. The day starts with the U.S. Dollar steady and trading at 1.293 to Sterling, at 1.136 to the Euro and the U.S. Dollar buying 3.698 Brazilian Real. The coffee markets started the day in relatively light trade and either side of unchanged. The markets drifted around par as the morning progressed with volume sluggish. The afternoon session gathered momentum moving into a narrowly positive range toward the latter part of the day with volumes picking up pace in the last few hours of the day. The key robusta producer Vietnam still off the field while celebrating Tet New Year, while the Brazil Real slipped back to 3.70 against the US Dollar toward the latter half of the day. The markets finished the day in positive territory with good volume building toward the end of the day in New York and a close in both markets in positive territory, near to the highs achieved, to set the close yesterday as follows: LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb. MAR 1,556 + 21 MAR 105.50 + 0.65 |
