Over the same week the Non Commercial Speculative sector of this market increased their long position within the market by 589.82%, to register net long position of 8,540 Lots. This net long position which is the equivalent of 2,421,052 bags has most likely been little changed to perhaps marginally increased, over the period of mixed but overall more positive trade which has since followed and likewise, that of the Managed Money Fund sector within this market.

The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Non Commercial sector of this market decrease their net long position within this market by 29.1% during the week of trade leading up to Tuesday 7th. June; to register a long position of 6,804 Lots. This net long position which is the equivalent of 1,134,000 bags has most likely to have been further reduced, following the period of mixed but overall more negative trade that has since followed.

With the weekend over and the weather conditions now turning warmer over the main arabica coffee districts in South East Brazil, the Brazilian meteorologists Somar have reported that the cold front has passed with only some minimal incidences of freezing weather for isolated high grown coffee districts in South Minas. This report has not been accompanied by any striking reports of damage to the coffee trees and it would seem that the cold front has after all had no impact upon the prospects for the next 2017 Brazil arabica coffee crop.

It has however as it has been twenty two years since there were last any incidences of severe frost damage to the Brazil coffee farms, been something of a wakeup call for the markets last week. This with the corresponding mini rally for the New York market, might indicate that with the traditional frost season due to last into early August, that there might be further fears being voiced with any forthcoming cold fronts entering South East Brazil and bring with it potential volatility for the New York market for the coming eight to nine weeks.

The September to September contracts arbitrage between the London and New York markets broadened yesterday, to register this at 63.05 usc/Lb., while this equates to a 45.26% 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 decrease by 108 bags yesterday; to register these stocks at 1,312,202 bags. There was meanwhile a larger in volume 1,100 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 25,052 bags.

The global equity markets had something of a down day yesterday, while the commodity markets were mixed but remained on an overall steady track for trade, to see the overall macro commodity index showing some modest buoyancy for the day. The Natural Gas, Cocoa, Coffee, Copper, Corn, Soybean, Gold and Silver markets had a day of buoyancy and the Orange Juice market was steady, while the Oil, Sugar, Cotton and Wheat markets were marginally softer for the day. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.01% higher; to see this Index registered at 431.68. The day starts with the U.S. Dollar steady to buoyant and trading at 1.416 to Sterling and 1.128 to the Euro, while North Sea Oil is relatively steady in early trade and trading at 48.60 per barrel.

The London and New York markets started the day yesterday with some early buoyancy, but while the London market maintained its muscle the New York market soon slipped back into negative territory and to see the markets take this mixed stance into the afternoon trade. The London market eventually also succumbed and took a short dip into modest negative territory but soon recovered as did the New York market and to see the markets both showing a degree of buoyancy for the rest of the day’s trade. The London market continued on a sideways positive track but failing to recover most of the early in the day’s good gains and to end the day on a positive note but with only 25.9% of the earlier in the day’s gains intact, while the New York market that had experienced losses of 4.85 usc/Lb. earlier in the day retained some buoyancy and ended the day on a modestly positive note and with only 17% of the earlier gains of the day intact. The ability of the markets to maintain a close on the positive side of par is somewhat encouraging but perhaps only modestly so and one might expect to see little better than a hesitant near to steady start for early trade today against the prices set yesterday, as follows:

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

JUL 1649 + 6                                          JUL 137.30 + 0.35
SEP 1681 + 7                                          SEP 139.30 + 0.45
NOV 1697 + 6                                       DEC 141.80 + 0.55
JAN 1711 + 7                                       MAR 144.15 + 0.55
MAR 1725 + 4                                     MAY 145.60 + 0.40
MAY 1743 + 4                                        JUL 147.05 + 0.20
JUL 1761 + 4                                          SEP 148.45 + 0.05
SEP 1775 + 4                                         DEC 150.20 – 0.10
DEC 1794 + 4                                       MAR 151.60 – 0.20
MAR 1790 + 4                                      MAY 152.50 – 0.20