The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector increase their net short position by 114.70% within the market over the week of trade leading to Tuesday 10th. January 2023: to register a new net short sold position of 31,070 lots, which is the equivalent of 8,808,207 bags. This net short position has most likely been increased following the period of mixed but overall softer trade that has since followed.

The latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector cut their net short position by 13.18% within the market over the week of trade leading to Tuesday 10th. January 2023: to register a new net short sold position of 19,605 Lots which is the equivalent of 3,267,500 bags. This net short position has most likely been decreased further following the period of mixed but overall firmer trade that has since followed.

Today is a national holiday in the U.S.A. in observance of Martin Luther King Day, thus this market will be off the field of play for the day, to see the London market trading solo for the day.

The March 2023 to March 2023 contract arbitrage between the London and New York markets widened on Friday to register this at 64.79 usc/Lb. This equates to 42.71% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 5,146 bags on Friday, to register these stocks at 850,724 bags, with 94.36% of these certified stocks being held in Europe at a total of 802,781 bags and the remaining 5.64% being held in the USA at a total 47,943. Of this, a total 466,010 bags, or 54.79% of the coffees registered and stored in consumer country certified warehouses of the exchange, Brazil washed arabica, and a further 41.20% of these certified coffees, originating from Honduras. There was meanwhile a 16,284 bags decrease to the number of bags pending grading to the exchange; to register 139,161 bags pending grading on the day.

It was a firmer day on the commodity markets on Friday, with the US Dollar losing ground to a basket of other currencies, with markets expectations of a slowdown in the US Federal Reserve’s aggressive monetary policy stance. The Coffee, Cocoa, Sugar, Corn, Soybean, Wheat, Gold and Silver markets ended the day on a positive note, while the Platinum and Palladium markets ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.226 Sterling, at 1.085 the Euro and with the US Dollar buying 5.095 Brazil Real.

The New York and London markets started the day on Friday trading to the south of par on modest softer notes respectively. Both markets continued to trade on a modest softer level for the remainder of the early morning session. The markets oscillated to the firmer side of par, gaining momentum to trend firmer as support was seen to build during the late morning session. As the afternoon progressed the New York and London markets, buoyed by buy stops, with speculative buyers active, upward momentum continued to build to see both markets hit a ceiling for the day’s session, to limit the gains. Late in the day the markets dropped back from the day’s highs to see the New York market settle on a firmer note at the close, while the London market followed suit to likewise settle on a firmer note at the close.

The London market ended the day on a positive note with 89.74% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note with 77.97% of the earlier gains of the day intact. This follow through firmer close for the markets, might be an indication of some degree of consolidation and direction, with both the New York and the London markets settling near to the highs of the day. This might see the London market, trading solo for the day, set for a follow through steady start to early trade today, against the prices set on Friday, as follows:

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

MAR   1916 + 35                                      MAR   151.70 + 2.30
MAY   1879 + 32                                      MAY   152.55 + 2.40
JUL     1857 + 35                                      JUL     153.10 + 2.50
SEP     1839 + 37                                      SEP     153.45 + 2.60
NOV   1827 + 40                                      DEC    153.65 + 2.70
JAN    1821 + 45                                      MAR   154.10 + 2.75
MAR  1819 + 45                                      MAY   154.55 + 2.80
MAY  1825 + 45                                      JUL     154.90 + 2.75