Coffee Market Report June 05 2017

The latest Commitment of Traders report from the New York arabica coffee market has seen the Non-Commercial Speculative sector of this market increase their net short sold position within the market by 17.92% during the week of trade leading up to Tuesday 30th May; to register a net short sold position of 18,852 Lots on the day. This net short-sold position which is the equivalent of 5,344,458 bags has most likely been little changed to perhaps marginally trimmed, following the mixed overall softer trade that has since followed. 

The September to September contracts arbitrage between the London and New York markets narrowed on Friday, to register this at 37.09 usc/Lb., while this equates to 28.99% 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 8,421 bags on Friday; to register these stocks at 1,485,138 bags.  There was meanwhile 5,617 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 48,907 bags.

 The commodity markets were mixed on Friday, most turning softer as the latest round of economic indicators in job data released in leading consumer country U.S.A., appeared to be negatively received by the markets.  The U.S. Dollar lost ground against a basket of other currencies while the safe haven Gold markets, registered improvements on the day.  It was a softer day for Oil, Sugar, Coffee, Cocoa, Cotton, Copper, while in weather related buoyancy, a positive close on the day for Wheat, Corn, Soybean markets and a positive day for Gold, Silver, Platinum and Palladium. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.15% lower, to see this Index registered at 403.57.  The day starts with the U.S. Dollar steady and trading at 1.286 to Sterling and at 1.126 to the Euro, while North Sea Oil is firm in early trade and selling at $ 49.25 per barrel.

 The London market started the day on a softer note, while the New York market had a steady to positive start for the day’s trade.  The morning session set a mildly negative track in both markets although London found a degree of underlying buyer support and this market moved back into positive territory by midsession to gradually build on and then maintain the gains for much of the afternoon.  The New York market registered another heavy volume day in the front months and this market which had started with a degree of buoyancy, slipped through par by mid session and into negative territory.  The softer track in New York initially brought underlying buyer support back to the floor, however this was short lived and the afternoon session in this market turned, to once more break through par with speculative sellers weighing in, the latter day in New York saw the trend move incrementally lower.  A generally softer sentiment across the commodities board on Friday would seem to have weighed in and the session ended the week London hardly changed on the day, after a generally positive session and a close in New York at the low posted on the day, against the prices set on Friday, as follows:

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

JUL     1981 Unch                                         JUL     125.55 – 2.15
SEP     2002 +  1                                           SEP     137.90 – 2.15
NOV    2001 Unch                                         DEC    131.45 – 2.10
JAN     1985 – 4                                             MAR   134.90 – 2.10
MAR    1971 – 4                                             MAY   137.15 – 2.05
MAY    1968 – 4                                             JUL    139.35 – 2.00
JUL     1979 – 6                                             SEP    141.40 – 2.00
SEP     1992 – 8                                             DEC   143.90 – 1.95
NOV    1999 – 8                                             MAR   146.40 – 1.85
JAN     2006 – 8                                             MAY   147.45 – 1.85