The New York and London markets are closed for the day on Monday the 26th December. The New York market shall be trading solo for a shortened day on Tuesday 27th December, while the London market shall resume trade on Wednesday 28th December.

The March 2023 to March 2023 contract arbitrage between the London and New York markets narrowed yesterday to register this at 83.71 usc/Lb. This equates to 49.56% price discount for the London Robusta coffee market. This wide arbitrage may 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 seen to increase by 2,675 bags yesterday, to register these stocks at 788,275 bags, with 93.61% of these certified stocks being held in Europe at a total of 737,927 bags and the remaining 6.39% being held in the USA at a total 50,348. Of this, a total 449,007 bags, or 56.96% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 39.71% of these certified coffees, originating from Honduras. There was meanwhile 6,931 bags decrease to the number of bags pending grading to the exchange; to register 268,631 bags pending grading on the day.

It was a mixed but overall softer day on the commodity markets yesterday, with newly released US economic Data interpreted as positive by the speculative sector, leading to a boost in the US Dollar. The Cocoa and Sugar markets ended the day on a positive note, while the Coffee, Corn, Soybean, Wheat, Gold, Silver, Platinum and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.204 Sterling, at 1.060 the Euro and with the US Dollar buying 5.167 Brazil Real.

The New York market started the day yesterday trading marginally softer, while the London market started the day trading to the north of par. The markets quickly attracted trended to the downside. This saw both the New York and London markets set early lows for the day. The markets gained a small degree of support during the mid-morning session recover the earlier losses and gather momentum back towards par. As the afternoon progressed, both the New York and the London markets dropped back from the support of the late morning session to come under pressure in mainly technical trade. The markets continued to project lower, pressured further by selling in the market to accentuate the losses for the day’s trade. The late afternoon session saw both the New York and the London markets rebound from the earlier in the day lows, to find some degree of support. This support late in the day, saw the New York market settle on a softer note recovering most of the earlier losses, while the London market followed suit to likewise settle on a softer, near to unchanged note at the close.

The London market ended the day on a modest near to unchanged negative note with 6.67% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note with 10.71% of the earlier losses of the day intact. This softer close for the markets does little to indicate direction, albeit that both the New York and the London markets recovered most of the earlier losses of the day, in what was a light volume day, to possibly see the markets set for a hesitant start to early trade today, against the prices set yesterday, as follows:

LONDON ROBUSTA US$/MT              NEW YORK USC/LB.

MAR   1878 – 1                                        MAR  168.90 – 0.45
MAY   1849 + 3                                        MAY  168.75 – 0.30
JUL     1834 + 2                                        JUL    168.45 – 0.40
SEP     1823 + 5                                        SEP    168.05 – 0.45
NOV   1814 + 10                                      DEC   167.75 – 0.45
JAN    1813 + 13                                      MAR  167.55 – 0.35
MAR  1812 + 13                                      MAY   167.60 – 0.35
MAY  1818 + 13                                      JUL     167.45 – 0.35