Coffee Market Report May 23 2017

The latest Commitment of Traders report from the New York arabica coffee market has seen the shorter term in nature Managed Money fund sector of this market increase their net short sold position within the market by 21.08% over the week of trade leading up to Tuesday 16th May; to register a new net short-sold position of 13,045 Lots.   Meanwhile the longer term in nature Index Fund sector of this market increased their net long position within the market by 0.28%, to register a net long position of 33,767 Lots on the day.
Over the same week, the Non-Commercial Speculative sector of this market increased their net short sold position within this market by 22.05%, to register a net short sold position of 13,168 Lots.  This net short sold position which is the equivalent of 3,733,069 bags and has most likely been little changed to perhaps marginally decreased, following the mixed trade but overall buoyant trade that has since followed.
The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Non-Commercial sector of this market decrease their net long position within this market by 15.02% during the week of trade leading up to Tuesday 16th May; to register a net long position of 20,789 Lots.  This net long position which is the equivalent of 3,464,833 bags has most likely been decreased, following the period of mixed overall softer trade that has since followed.
The July to July contracts arbitrage between the London and New York markets widened yesterday, to register this at 43.28 usc/Lb., while this equates to 33.14% price discount for the London robusta coffee market.  This relatively low arbitrage, may start to become 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 decrease by 1,170 bags yesterday; to register these stocks at 1,447,885 bags.  There were meanwhile 403 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 42,184 bags.
The commodity markets had a mixed but overall positive day yesterday, as the political climate in the USA continued to weigh on investor confidence and the US Dollar maintained a softer stance against other major currencies.  The oil markets had a steady to positive day, as was it a positive close for Sugar, Copper, Wheat, Corn, Soybean, Gold, Silver, Palladium, and a softer day for Cocoa, Coffee, Cotton, Orange Juice and Platinum. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.41% higher, to see this Index registered at 415.03.  The day starts with the U.S. Dollar steady and trading at 1.298 to Sterling and at 1.124 to the Euro, while North Sea Oil is steady in early trade and is selling at $ 53.01 per barrel.
 
The London and New York markets started the day on a positive note and the morning session in both markets held steady above par in limited and light volume.  As the day progressed both markets set a lower track, as selling activity weighed into the markets, assisted by a weaker Brazil Real brought about by a degree of investor withdrawal in reaction to the recent turn of political events in the country.  The softer track in both markets moving to midsession initially met with underlying buyer support and a gradual move lower in both markets toward the latter half of the session.  The last three hours of the session in London however, took a more dramatic turn as sellers reappeared with only limited underlying buyer support to prop up the latter half of the session and this market, finished the day on a softer note, on the days lows.  The New York market faired a little better to set a more positive track toward the latter half of the day and register a recovery from the lows in the last hour of the day.  Both markets seemingly devoid of direction and with little in the way of fundamental news to guide sentiment, the markets set the close yesterday after a fair volume day in London and a comparatively limited volume day in New York, on a softer note, as follows:
LONDON ROBUSTA US$/MT                      NEW YORK ARABICA USc/Lb.
MAY    1895 – 56
JUL     1925 – 52                                          JUL     130.60 – 1.50
SEP     1944 – 54                                          SEP    132.95 – 1.55
NOV    1952 – 52                                          DEC    136.45 – 1.45
JAN     1948 – 56                                          MAR   139.65 – 1.40
MAR    1941 – 60                                          MAY   142.10 – 1.40
MAY    1940 – 61                                          JUL    144.20 – 1.40
JUL     1960 – 61                                          SEP    146.15 – 1.30
SEP     1968 – 61                                          DEC   148.55 – 1.30
NOV     2036 – 6                                           MAR   150.90 – 1.35