The latest Commitment of Traders report from the New York arabica coffee market has seen the Non-Commercial Speculative sector of this market increase their net long position within the market by 24.70% during the week of trade leading up to Tuesday 18th. October; to register a net long position of 39,040 Lots on the day. This net long position which is the equivalent of 11,067,667 bags has most likely been increased, following the period of mixed but overall more positive trade, which has since followed.

The March to March contracts arbitrage between the London and New York markets narrowed on Friday, to register this at 61.94 usc/Lb., while this equates to a 38.81% price discount for the London robusta coffee market. This arbitrage is perhaps becoming a less attractive factor for the roasters who have considered robusta coffees to be an opportunist discount component, within their mostly arabica coffee blends.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 1,715 bags yesterday; to register these stocks at 1,276,912 bags. There was a total of 4,905 bags decrease in the number of bags pending grading for this exchange; to register these pending grading stocks at 26,643 bags.

It was a mixed day of trade for the commodity markets on Friday, as the U.S. Dollar rose to its highest in eight months against other major currencies, as speculative confidence warmed to the latest mention of the readiness of the US Federal Reserve Bank to implement an interest rate hike and the likelihood (or not), of this to occur before the end of the year. It was a mildly steady to positive close for Oil, Sugar, Coffee, Cocoa, Orange Juice, Corn, Soybean, Gold and Silver markets, whereas a softer day registered a Cotton, Copper, Wheat, Platinum and Palladium markets. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.27% higher to see this Index registered at 417.66. The day starts with the U.S. dollar steady and trading at 1.223 to Sterling and 1.088 to the Euro, while North Sea Oil is near to steady and trading at 50.48 per barrel.

The London and New York markets started the day on Friday, on a steady to softer note in relatively thin volume at the start to the session. The New York market found some early morning support and a more buoyant session ensued with both markets moving above par, by midsession. The New York market registered a steady trend at that point with trade either side choppy, this market remained within a positive but narrow range into the afternoon, where further upside moves were met with sellers at the top, to cap the afternoon gains. As the day progressed toward the close the strength of the U.S. Dollar within the overall macro spilled into this market, to see late in the session selling pressure returning to the floor to force the New York market back into negative territory, but only for a brief moment until the tide turned positive once more but with limited time to manoeuvre, this market finished the day in mildly positive territory. The London robusta market had a comparatively more positive day and the afternoon session continued to build upon the gains achieved in the robusta market, to register a close in this market near to the top of the days’ gains, to set the close on Friday in both markets, after a mostly positive day as follows:

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

NOV       2128 + 33                     DEC   156.10 + 0.20
JAN        2153 + 31                     MAR  159.60 + 0.20
MAR      2153 + 31                     MAY  161.80 + 0.15
MAY      2153 + 30                     JUL    163.70 + 0.15
JUL        2154 + 27                     SEP    165.45 + 0.15
SEP        2158 + 27                     DEC   167.75 + 0.15
NOV      2165 + 25                     MAR 169.60 + 0.10
JAN       2173 + 25                     MAY 170.55 + 0.15
MAR     2180 + 25                     JUL   171.50 + 0.20
MAY     2183 + 25                     SEP   172.40 + 0.20