The National Coffee Institute in Costa Rica has reported that the countries coffee exports for the month of May were 23,231 bags or 15.56% higher than the same month last year, at a total of 172,460 bags. This volume they report has contributed to the countries cumulative coffee exports for the first eight months of the present October 2015 to September 2016 coffee year to be approximately 4% higher than the same period in the previous coffee year, at a total of 826,347 bags.

The National Coffee Institute in Honduras has reported that the countries coffee exports for the month of May were 38,091 bags or 5.32% higher than the same month last year, at a total of 754,299 bags. This volume they report has contributed to the countries cumulative coffee exports for the first eight months of the present October 2015 to September 2016 coffee year to be approximately 0.4% above that of the same period in the previous coffee year, at a total of 3.808 million bags.

The Brazil analysts Safras e Mercado have estimated that by Wednesday this week that 21% of the new Brazil crop had been harvested, which is a harvest factor based upon their forecast for this new crop to be approximately 56.4 million bags. This new crop harvest is presently weighted towards the new conilon robusta coffee crop that comes into maturity approximately a month ahead of the arabica coffees and an estimated 35% or 4.75 million bags estimated to have been brought in, whereas 16% or an estimated 6.9 million bags of the lower grown sector of the Arabica coffee farms crop had been harvested by the start of the month.

The September to September contracts arbitrage between the London and New York markets widened yesterday, to register at 49.88 usc/Lb., while this equates to a 39.91% price discount for the London robusta coffee market. This arbitrage remaining relatively attractive to roasters in comparison to arabica coffee prices, continues to inspire support for the robusta coffee sector of the industry.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 1,671 bags yesterday; to register these stocks at 1,313,669 bags. There was a 2,676 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 16,168 bags.

It was an overall positive day for the commodity markets yesterday, the Euro declined on the European Central Bank’s cautious outlook while the later news in the day of lower than anticipated U.S. crude inventories provided some inspiration for speculative buyers in the oil markets. It was a positive day for Oil and a strong day for Sugar, Cocoa, Arabica Coffee, Orange Juice, Wheat, Corn and Soybean were all firm, it was however a softer day for Copper, Cotton, Gold, Silver Platinum and Palladium. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.83% higher at 416.20. The day starts with the U.S. Dollar trading at 1.4422 to Sterling and 1.1154 to the Euro, while North Sea Oil is tending firmer in early trade at 49.32 per barrel.

The coffee markets started the day yesterday on a positive track yesterday and follow through buoyancy for the morning session to trigger buy stops along the way in New York, both markets maintained a modestly positive track influenced by the overall positive mood within the commodities sector. As the business day opened in New York, an increase in selling activity weighed in to this market with London following suit and a softer afternoon session ensued for London, with New York attracting underlying buyer support to prop up the floor and another attempt to the higher toward the end of the day in this market. It was a fair volume day for both markets although levels were held within a narrow range with New York finishing the day close to the middle of the day’s trading range and a softer finish in the London market, at the low on the day, to set the close yesterday, as follows:

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

JUL 1632 - 14 JUL 123.00 + 1.10
SEP 1656 - 11 SEP 125.00 + 1.15
NOV 1668 - 11 DEC 127.55 + 1.10
JAN 1680 - 9 MAR 130.20 + 1.15
MAR 1688 - 7 MAY 131.95 + 1.15
MAY 1699 - 5 JUL 133.65 + 1.20
JUL 1708 - 5 SEP 135.30 + 1.30
SEP 1721 - 5 DEC 137.45 + 1.50
DEC 1740 - 5 MAR 140.35 + 1.55
MAR 1736 - 5 MAY 141.30 + 1.55