Coffee Market Report May 17 2017

The July to July contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 42.59 usc/Lb., while this equates to 32.40% price discount for the London robusta coffee market.  This still relatively low arbitrage, remains not such an attractive factor for the many price sensitive roast and ground 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 5,298 bags yesterday; to register these stocks at 1,437,729 bags.    There were meanwhile 4,075 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 49,725 bags.
The commodity markets had a mixed to softer day yesterday, although other key economic data reflected positively, the latest round of housing data to come from leading economy U.S.A., reported a decline and these figures received with some concern by the markets.  This in combination with uncertainty that has been created by the latest round of political interplay within the same country, saw the US Dollar slip to the weakest level in more than six months.  The Oil markets were mixed but overall softer on the day, as was it a lower day for Cocoa, Coffee, Cotton, Orange Juice, Wheat and Corn.  It was a firmer day for Sugar, Copper, Soybean, Silver and Platinum, although a softer day for Palladium while safe haven Gold finished firmer on the day. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.12% lower, to see this Index registered at 409.84.  The day starts with the U.S. Dollar steady and trading at 1.292 to Sterling and easier at 1.11 to the Euro, while North Sea Oil is softer in early trade and selling at $ 50.53 per barrel.
 
The London and New York markets started the day on a mildly softer note yesterday and in modest volume as the trading day began.   Both markets took a more buoyant turn as the morning progressed with both markets pushing into positive and above par with the assistance of speculative buyer support. The day turned moderately softer as the America’s came to floor at the start of their business day, to set a softer track in New York that steadily and in a narrow trading range, moved south to the close of the day.  A similar pattern in London with a limited move upwards right at the end of the session to see this market finish just above the day lows, to set the close yesterday, on a softer note for both markets, as follows: 
LONDON ROBUSTA US$/MT                          NEW YORK ARABICA USc/Lb.
MAY     1931 – 10                                              MAY   129.25 – 2.00
JUL      1959 – 10                                              JUL    131.45 – 2.00
SEP      1980 –   9                                              SEP    133.85 – 1.95
NOV     1988 –   9                                              DEC    137.30 – 1.90
JAN      1991 –   9                                              MAR   140.80 – 1.85
MAR     1989 –   9                                              MAY   143.10 – 1.75
MAY     1992 –   9                                              JUL    145.25 – 1.75
JUL      2012 –   4                                              SEP    147.10 – 1.75
SEP      2020 –   4                                              DEC   149.50 – 1.80
NOV     2027 –   4                                              MAR   151.90 – 1.80