The latest Commitment of Traders report from the New York arabica coffee market has seen the shorter term in nature Managed Money fund marginally increase their net long position by 0.05% within this market over the week of trade leading up to Tuesday 21st. May 2024; to register a new long position at 52,593 Lots. The longer term in nature, Index Fund sector of this market increased their net long position by 0.63% within the market, to register a new net long position of 48,147 Lots on the day.

Over the same week, the Non-Commercial Speculative increase their net long position by 3.43% within the market over the week of trade leading to Tuesday 21st. May 2024: to register a new net long position of 41,377 lots, which is the equivalent of 11,730,196 bags. This net long position has most likely been increased further following the period of mixed but overall firmer trade that has since followed.

The Certified washed Arabica coffee stocks held against the New York arabica market were seen to decrease by 30 bags on Friday, to register these stocks at 774,686 bags, with 99.29% of these certified stocks being held in, Europe at a total of 769,097 bags and the remaining 0.71% being held in the USA at a total 5,589 Bags. Of this, a total 384,210 bags, or 49.60% of the coffees registered and stored in consumer country certified warehouses of the exchange, are Brazil washed arabica, and a further 17.06% of these certified coffees, originating from Honduras. The pending grading stocks were seen to increase by 1,780 bags; to register 23,980 bags pending grading on the day.

The July 2024 to July 2024 contract arbitrage between the London and New York markets narrowed on Friday, to register this at 41.71 Usc/Lb. This equates to 19.11% price discount for the London Robusta coffee.

The commodity markets lacked the participation of many of the U.S.A based markets yesterday, which were closed due to the Memorial Day holiday yesterday, to provide no direction for the overall macro commodity index for the day. The Coffee, Cocoa, Corn, Soybean, Sugar, Gold, Silver, Palladium and Platinum markets ended the day on a positive note, while the Wheat market ended the day on a softer note. The day starts with the U.S. Dollar trading at 1.278 Sterling, at 1.088 the Euro and with the US Dollar buying 5.173 Brazil Real.

The New York market started the day on Friday trading on a modest firmer note, while the London market was pressured lower during the early morning session. Both markets attracted support during the early morning session to track mildly firmer for the remainder of the morning session before gaining momentum, as support was seen to build during the late morning session. As the afternoon progressed, the New York market continued to trade north of par, albeit that the mid-afternoon session saw the market take a marginally softer track. The London market followed suit to likewise trend in a firmer direction for the remainder of the day’s session. The New York market hit a ceiling late in the day to limit the gains for the day with sellers returning to the floor. The New York market dropped back from the highs late in the day, to settle on a firmer note at the close. The London market followed suit, to continue to trend firmer buoyed by support within the market, to encounter resistance late in the day and settle on a firmer note at the close.

The London market ended the day on a positive note with 82.95% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note, with 57.14% of the earlier gains of the day intact. This firmer close for the markets, might provide some degree of support and direction to the open tomorrow, albeit that both the New York and the London markets fell back from the highs of the day a choppy session in a comparatively narrow range, with the markets are closed yesterday due to the Memorial Day Holiday in New York and the Spring Bank Holiday in London, one might think that the markets are due for a follow through hesitant start to early trade today, against the prices set on Friday, as follows:

LONDON ROBUSTA US$/MT                 NEW YORK USC/LB.
Close: 24/05/2024                                       Close: 24/05/2024

JUL     3892 + 73                                          JUL    218.25 + 2.60
SEP     3806 + 67                                          SEP    217.35 + 2.55
NOV   3709 + 65                                          DEC   216.10 + 2.50
JAN    3616 + 68                                          MAR  215.25 + 2.40
MAR  3532 + 69                                          MAY   214.40 + 2.35
MAY  3474 + 68                                          JUL     213.75 + 2.35
JUL    3408 + 67                                          SEP     213.05 + 2.35
SEP    3316 + 67                                          DEC   212.50 + 2.35