I. & M. Smith (Pty) Ltd. since 1915


I. & M. Smith (Pty) Ltd.

Coffee Market Report

23 Jan 2020

The Ugandan Coffee Development Authority UCDA have reported that their country’s coffee exports for the month of December were 15,809 bags or 5.02% higher than the same month last year, at a total of 330,248 bags. This has contributed to the country’s cumulative coffee exports for the first three months of the present October 2019 to September 2020 coffee year to have been 78,210 bags or 7.32% higher than the same period in the previous coffee year, at a total of 1,147,301 bags.

The Ivory Coast have reported that the countries coffee exports for the first eleven months of this year have increased by 496,550 bags or 43.38%, to register these exports at 1,641,167 bags. This report indicating that the country has well exceeded the initial forecast for exports of 1.4 million bags, for this calendar year.

The March to March contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 50.35 usc/Lb. This equates to 45.36 % price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 10,605 bags yesterday; to register these stocks at 2,143,033 bags, with 88.9% of these certified stocks being held in Europe at a total of 1,904,843 bags and the remaining 11.1% being held in the USA at a total of 238,190 bags. There was meanwhile a larger in number increase by 25,214 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 124,184 bags.

The commodity markets were mixed in trade yesterday, to see overall macro commodity index taking a soft sideways track for the day. The Sugar, London Robusta Coffee, Cotton, Orange Juice, Corn and Silver markets ended the day on a positive note, the gold market remained unchanged on the day, while the Oil, Natural Gas, Cocoa, New York Arabica Coffee, Copper, Wheat and Soybean markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.0764% lower; to see this index registered at 416.3192 The day starts with the U.S. Dollar steady, trading at 1.312 to Sterling, at 1.108 to the Euro and with the US Dollar buying 4.183 Brazilian Real.

The London and New York markets started the day yesterday trading close to par on a modest positive note, the London market maintained this modest positive stance into the early afternoon trade, while the New York market fell back into negative territory into the early afternoon trade. As the afternoon progressed the London market continued on a modest firm track to close on a modest positive note, while the New York market closed on a modest soft note for the day.

The London market ended the day on a modest positive note and with 50% of the earlier gains of the day intact, while the New York market ended the day on a modest negative note and with 5.26% of the earlier losses of the day intact. This mixed close does little to indicate direction for the day today, which is likely to see the markets due for a hesitant near to steady start for early trade today, against the prices yesterday, as follows:

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

MAR 1337 + 2                                                                    MAR 111.00 – 0.05
MAY 1351 + 3                                                                    MAY 113.25 – 0.10
JUL 1369 + 3                                                                      JUL 115.50 – 0.15
SEP 1387 + 2                                                                      SEP 117.55 – 0.20
NOV 1405 + 1                                                                    DEC 120.30 – 0.25
JAN 1423 + 1                                                                      MAR 122.90 – 0.25
MAR 1445 + 1                                                                    MAY 124.20 – 0.25
MAY 1468 + 1                                                                    JUL 125.35 – 0.20
JUL 1491 + 1                                                                      SEP 126.50 – 0.15