The Green Coffee Association of the U.S.A. have announced that the countries port warehouse stocks decreased by 6,055 bags during the month of August, to register these stocks at 6,117,108 bags at the end of the month. These stocks do not of course include the in transit bulk container coffees or the onsite roaster inventories, which with an approximate combined U.S.A. and Canadian weekly consumption that is fed by these stocks of 500,000 bags per week, would conservatively have been at least 1 million bags.

The second month arbitrage between the markets narrowed yesterday, to register this at 61.76 usc/Lb., while this equates to a 45.05% price discount for the London robusta coffee market. This arbitrage remaining relatively attractive to roasters in comparison to arabica coffee prices, but is perhaps due to widen further in time and when Vietnam stocks start to impact upon the fortunes of the London market.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 9,788 bags yesterday; to register these stocks at 1,894,752 bags. There was meanwhile an increase in volume 5,488 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 77,497 bags.

It was a mixed day on the commodity markets yesterday; with the leading in influence Oil markets, lower on the day while the US Dollar registered a better day. It was a softer day in the Oil markets, Cocoa, Corn, Wheat, Cotton, Soybean, Arabica coffee finished lower, with a steady day for Gold and Silver and a more positive day for Orange Juice, Copper, Platinum and Palladium. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.22% lower to see this Index registered at 407.62. The day starts with the U.S. Dollar tending softer and trading at 1.547 to Sterling and 1.137 to the Euro, while North Sea Oil is steady in early trade and is selling at 49.27 per barrel.

The London and New York markets started the day yesterday on a steady note, with the early morning session in negative territory. There was a degree of buoyancy noted toward midsession in both markets and underlying buyer activity provided support to see both markets in positive territory. This trend continued in London to the latter half of the day, with this market finishing the day near to the day highs. It was a less positive latter half for New York however which held steady and in a relatively narrow range in the afternoon, however with some volume selling activity coming in toward the end of the day to push this market lower and into negative territory, the close in this market was at the lower end of the day trading range , to set the close yesterday in both markets as follows:

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

NOV   1667 + 36                         DEC 133.70 – 0.95
JAN    1661 + 23                         MAR 137.10 – 0.95
MAR  1676 + 24                         MAY 139.00 – 1.05
MAY  1695 + 24                        JUL 140.75 – 1.00
JUL    1715 + 24                         SEP 142.45 – 1.05
SEP    1734 + 24                         DEC 144.65 – 0.95
NOV  1753 + 24                         MAR 146.85 – 0.90
JAN   1771 + 24                         MAY 148.50 – 0.85
MAR 1789 + 24                         JUL 150.95 – 0.80
MAY 1805 + 24                         SEP 154.15 – 0.65