I. & M. Smith (Pty) Ltd. since 1915


I. & M. Smith (Pty) Ltd.

Coffee Market Report

13 Aug 2020

The Ivory Coast as west Africa’s leading robusta coffee producer, have reported that their coffee exports for the month of June were 78,733 bags or 41.35% lower than the same month last year, at a total of 111,783 bags. This has contributed to their country’s cumulative coffee exports for the first six months of 2020 to be 151,600 bags or 20.54% lower than the same period last year, at a total of 586,483 bags.

The November to December contract arbitrage between the London and New York markets widened yesterday; to register this at 53.38 usc/Lb. This equates to 46.72% 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 4,551 bags yesterday to register these stocks at 1,412,509 bags, with 93.6% of these certified stocks being held in Europe at a total of 1,322,404 bags and the remaining 6.4% being held in the USA at a total of 90,105 bags. There is meanwhile no change to the number of bags pending grading for this exchange; to register these pending grading stocks at 0 bags.

The Certified Robusta coffee stocks held against the London exchange have been reported to decrease by 10,333 bags over the weeks of trade leading up to Monday 10th. August, to see these stocks registered at 1,838,167 bags, on the day.

It was a firmer day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a positive sideways track for the day. The Sugar, Cocoa and Coffee markets ended the day on a positive note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.3290% higher; to see this index registered at 397.3592. The day starts with the U.S. Dollar steady, trading at 1.306 to Sterling, at 1.181 to the Euro and with the US Dollar buying 5.436 Brazilian Real.

The London and New York markets started the day yesterday trading close to par on a modest note, both markets continued on this upward track into the early afternoon trade to see both the London and New York markets hit a ceiling for the day. As the afternoon progressed the London and New York markets hit a ceiling to limit the gains for the day and to see both markets fall back from the highs of the day under a degree of selling pressure, both markets limited the losses to the markets close on modest positive notes respectively.

The London market ended the day on a modest positive note and with 25% of the earlier gains of the day intact, while the New York market ended the day on a likewise modest positive note and with 25.50% of the earlier gains of the day intact. This modest firmer close might inspire some degree of confidence to possibly set the markets for a hesitant steady start for early trade today, against the prices set yesterday, as follows:

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

SEP 1394 + 11                                                                       SEP 112.05 + 0.70
NOV 1342 + 5                                                                       DEC 114.25 + 0.65
JAN 1350 + 5                                                                        MAR 116.50 + 0.55
MAR 1364 + 4                                                                      MAY 117.50 + 0.45
MAY 1380 + 4                                                                      JUL 118.35 + 0.30
JUL 1399 + 3                                                                        SEP 119.00 + 0.20
SEP 1415 + 3                                                                        DEC 119.80 + 0.05
NOV 1432 + 2                                                                      MAR 120.70 – 0.05