MARKET REPORT 7TH SEPTEMBER, 2015.

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 24.54% during the week of trade leading up to Tuesday 1st. September; to register a net short sold position of 24,718 Lots. This net short sold position which is the equivalent of 7,007,443 bags has most likely been little changed, following the period of mixed but overall sideways soft trade which has since followed.

The arbitrage between the markets narrowed on Friday to register this at 46.62 usc/Lb., while this equates to a 39.13% price discount for the London robusta coffee market. This arbitrage remaining relatively attractive to roasters in comparison to arabica coffee prices, but is perhaps due to widen further in time and when Vietnam stocks start to impact upon the fortunes of the London market.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 2,217 bags on Friday; to register these stocks at 2,076,182 bags. There was meanwhile a larger in volume 4,125 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 25,103 bags.

The commodity markets lacked much excitement on Friday, but there was a degree of positive news late in the day with the latest U.S.A. employment figures that has seen non-farm unemployment fall to its lowest since April 2008. The markets were however one of some degree of distraction within the leading U.S.A. markets with many already thinking towards Labour Day on the 7th. September and the related long weekend, which assisted perhaps to the overall soft nature of the macro commodity index for the day. The Cocoa, London robusta Coffee, Wheat and Corn markets had a day of buoyancy, while the Oil, Natural Gas, Sugar, New York arabica Coffee, Cotton, Copper, Orange Juice, Soybean, Gold, Silver and Platinum markets tended softer for the day. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.61% lower to see this Index registered at 393.91. The day starts with the U.S. Dollar at 1.519 to Sterling and 1.114 to the Euro, while North Sea Oil is tending easier in early trade and is selling at 47.99 per barrel.

The London and New York markets started the day on a steady note on Friday, but with trade thin and lacklustre in nature and continuing so for the day. The markets moved mostly sideways within and relatively narrow trading range to see the markets taking an erratic stance and moving either side of par, thought the day. The London market ended the day on a modestly more positive note and with 52.9% of the gains of the day intact, while the New York market ended the day on a modestly negative note and with 38.1% of the earlier losses of the day intact. With both the U.S.A. and Brazil on holiday for their Labour Day and Independence Day holidays respectively, the New York market is not an issue for today but one might expect that following the softer close in New York that the London market might not be due to do little better than a near to steady start for early trade today against the prices set on Friday, as follows:

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

SEP 1589 + 4                                SEP   115.85 – 0.35
NOV 1599 + 9                              DEC  119.15 – 0.40
JAN 1612 + 6                               MAR 122.60 – 0.45
MAR 1631 + 5                             MAY 124.90 – 0.40
MAY 1650 + 3                             JUL   127.05 – 0.35
JUL 1668 – 1                                SEP   129.00 – 0.30
SEP 1688 – 3                                DEC   131.85 – 0.20
NOV 1709 – 3                              MAR  134.65 – 0.10
JAN 1731 – 3                                MAY 136.60 + 0.05
MAR 1753 – 3                              JUL    138.45 + 0.10