Following on from the International Coffee Organisation report that the Global coffee exports for the month of February were 160,000 bags or 1.7% higher than the same month last year, at a total of 9.21 million bags, the increase in shipments particularly noted to come from Colombia, Brazil, India and Ethiopia. This performance has contributed to the official ICO export figures for the first five months of the present October 2015 to September 2016 coffee year to be 898,000 bags or 2% higher than the same period in the previous coffee year, at 45,205,000 bags.

The July on July contracts arbitrage between the London and New York markets widened yesterday, to register this at 57.12 Usc/Lb., while this equates to a 44.38% price discount for the London robusta coffee market. This arbitrage remains relatively attractive to roasters in comparison to arabica coffee prices, with the good discount most likely due to remain in place for the foreseeable future, in line with steady robusta shipments out of Vietnam.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 184 bags yesterday; to register these stocks at 1,403,200 bags. The number of bags pending grading to the exchange similarly registered a drawdown of 2,840 bags, to see these pending grading stocks at 5,121 bags on the day.

It was another positive day in the commodity markets yesterday, with the US Dollar steadier on the day against other major currencies ahead of European Central Bank meetings this week. The oil markets were similarly steady to slightly firmer as USA inventory data reported numbers that were lower than initially anticipated by the market. It was a positive day for Oil, Sugar, Coffee, Cotton, Copper, Wheat, Corn Soybean markets, a positive day for Gold, Silver, Platinum and Palladium markets, a steady day for Cocoa, and softer day for Orange Juice. The Brazil Real had a less volatile day against the US Dollar and held steady throughout the day around 3.526 slipping modestly lower toward the end of the day. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 1.284% higher to see this Index registered at 403.99. The day starts with a steady U.S. Dollar at 1.435 to Sterling and 1.1297 to the Euro, while North Sea Oil is firmer in early trade and is selling at 44.58 per barrel.

The London and New York markets started the day yesterday with modest buoyancy and maintained this track into the afternoon trade, at levels just above par and in a narrow range. The New York arabica market seemed to take heart once more from the overall positive sentiment within the commodities sector whereas London held a narrowly positive band for much of the day. The latter session saw New York lose half of the gains that had been steadily earned during the first half of the session, as volume increased with the start of the business day in America and a choppy session followed, ahead of the first notice day today, on the prompt month in New York. There was another late in the day attempt in New York with underlying speculative buying support pushing a recovery to higher levels and a finish in this market in the middle of the days narrow trading range. The positive return in New York seemed to spur some degree of movement within London toward the end of the day in this market and a close in London at the high, to set the close yesterday in both markets on a positive note, as follows:

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

MAY   1547 + 12                       MAY 127.15 + 1.30
JUL     1578 + 13                       JUL   128.70 + 0.80
SEP     1598 + 12                       SEP   130.45 + 0.85
NOV   1616 + 12                       DEC  132.65 + 0.80
JAN    1634 + 13                       MAR 134.75 + 0.75
MAR  1647 + 13                        MAY 136.25 + 0.75
MAY  1664 + 13                        JUL   137.55 + 0.60
JUL    1683 + 13                        SEP  138.70 + 0.55
SEP    1700 + 13                        DEC 140.40 + 0.55
NOV  1720 + 13                        MAR 141.85 + 0.45