|The May to May contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 53.11 usc/Lb., while this equates to a 34.50% price discount for the London robusta coffee market. This relatively narrow arbitrage is now becoming less of an 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 decrease by 1,514 bags yesterday; to register these stocks at 1,288,675 bags. The certified stocks reported a further 2,577 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 36.344 bags.
The commodity markets were mixed in trade yesterday, the leading oil markets took a positive turn while the U.S. Dollar gained strength over the day, most other commodities on the index taking a softer track for the day. Apart form the oil markets it was a mildly positive day for Cotton and Sugar, with the rest of the board finishing the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.44% lower, to see this Index registered at 429.83. The day starts with the U.S. Dollar near to steady and trading at 1.255 to Sterling and 1.067 to the Euro, while North Sea Oil is showing a degree of buoyancy and is selling at $ 55.77 per barrel.
LONDON ROBUSTA US$/MT NEW YORK ARABICA USc/Lb.
JAN 2222 – 21