28th April, 2021.
The July-to-July contract arbitrage between the London and New York markets widened yesterday; to register this at 79.63 usc/Lb. This equates to 55.55% price discount for the London Robusta coffee market. This wide arbitrage will likely be viewed by price sensitive roasters as an attractive alternative discount for robusta against the comparatively higher value arabica coffee.
The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 4,800 bags yesterday, to register these stocks at 1,908,625 bags, with 95.12% of these certified stocks being held in Europe at a total of 1,815,492 bags and the remaining 4.88% being held in the USA at a total 93,133 bags. Of this, a total 958,520 bags, or 50.22% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 39.92% of these certified coffees, originating from Honduras. There was an increase in the number of bags pending grading to the exchange, by 6,080 bags; to register these pending grading stocks at 77,775 bags.
It was a mixed day on the commodity markets yesterday, the leading in influence Oil markets registered a positive day, the US Dollar treading around unchanged ahead of the U.S. Federal Reserve Bank announcements anticipated to come to the markets later today. It was a firm day for Palladium, Copper, Silver, Sugar, and Coffee, a mildly softer day for Gold, Platinum, Corn, Cocoa, Soybean and Wheat markets. The day starts with the U.S. Dollar, trading at 1.3874 Sterling, at 1.2073 the Euro and with the US Dollar buying 5.4522 Brazil Real.
The coffee markets started the day on a mildly softer note in London and in a continuation of the upward momentum in New York. The London robusta market moved into positive territory as the morning progressed and following a volatile first quarter of the session in New York this market settled into a positive, tight range toward midsession. The latter half of the session in New York brought fresh volumes of buying activity to the floor, triggering stops along the way, London following suite. As the trading day drew to a close, London touched upon the high of the day session, to settle near to the high on the day. The latter session for New York found resistance at the top of the day as selling increased, to cap the days gains, and register a close in this market, after another hefty volume trading day, near to the high, to set the close yesterday in both markets in positive territory, as follows:
LONDON ROBUSTA US$/MT NEW YORK USC/LB.
JUL 1461 + 21 JUL 145.90 + 2.55
SEP 1483 + 23 SEP 147.80 + 2.55
NOV 1499 + 23 DEC 150.00 + 2.60
JAN 1512 + 22 MAR 151.70 + 2.55
MAR 1526 + 22 MAY 152.30 + 2.45
MAY 1543 + 22 JUL 152.50 + 2.30
JUL 1559 + 21 SEP 152.55 + 2.25
SEP 1573 + 21 DEC 152.50 + 2.10