Coffee Market Report June 06 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 16.06% over the week of trade leading up to Tuesday 30th May, to register a new net short-sold position of 18,378 Lots.   Meanwhile the longer term in nature Index Fund sector of this market increased their net long position within the market by 1.24%, to register a net long position of 34,352 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 17.92%, to register a net short sold position of 18,852 Lots.  This net short sold position which is the equivalent of 5,344,458 bags and following the period of mixed trade that has since followed, has most been marginally reduced and likewise, that of the Managed Money fund sector of the market.

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 7.56% during the week of trade leading up to Tuesday 30th May; to register a net long position of 20,324 Lots.  This net long position which is the equivalent of 3,387,333 bags has most likely been trimmed, following the period of mixed but overall softer trade that has since followed.

The September to September contracts arbitrage between the London and New York markets widened yesterday, to register this at 39.40 usc/Lb., while this equates to 30.12% 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 4,239 bags yesterday; to register these stocks at 1,489,377 bags.  There was a total 8,983 bags reduction reported to  the number of bags pending grading for this exchange; to register these pending grading stocks at 39,924 bags.

It was a mixed day on the commodity markets yesterday, a number of countries observed Whit Monday, with these markets either closed for national holiday or relatively inactive in trade terms. The directional questions post the latest round of U.S. economic data and prospective developments surrounding the upcoming British elections all contributing toward a measure of uncertainty.  It was a steadier day for the U.S. Dollar, while Oil markets registered a lower day.  It was similarly a softer day for Cocoa, Cotton, Copper, Orange Juice, Corn and Wheat, while a more positive day for Sugar, Coffee, Soybean, Gold, Silver and Palladium, with Platinum steady on the day.  The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.075% lower, to see this Index registered at 403.27.  The day starts with the U.S. Dollar steady and trading at 1.291 to Sterling and at 1.126 to the Euro, while North Sea Oil is steady in early trade and selling at $ 48.71 per barrel.

The coffee markets opened the day yesterday on a positive note in New York and a steady to unchanged note in London.  The first attempts to the positive in London were pushed back to below par, where this market stayed in a narrow and mildly negative position for much of the morning.  In contract, New York set the tone for a mildly positive morning session which gained in support as the America’s opened for their business day and in a degree of buoyancy supported by speculative rolling out of the prompt month, the earlier narrowly positive stance gapped higher and into a new trading range as the afternoon set.  This positive mood in New York assisted to provide an additional boost in London and this market followed with another push to the positive triggering buying support to see this market track upwards toward the latter half of the day.  Once the ceiling appeared to be reached for the session both markets steadied out toward the end of the day with a degree of consolidation in New York.  It was another good volume day in New York and a decent volume day in London and both markets set a positive close near to the days’ highs in both markets, as follows:

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

JUL     1996 + 15                                            JUL     128.45 + 2.90
SEP     2015 + 13                                           SEP     130.80 + 2.90
NOV    2013 + 12                                            DEC    134.30 + 2.85
JAN     1997 + 12                                            MAR   137.80 + 2.90
MAR    1982 + 11                                            MAY   140.00 + 2.85
MAY    1979 + 11                                            JUL    142.10 + 2.85
JUL     1990 + 11                                            SEP    144.20 + 2.80
SEP     2003 + 11                                            DEC   146.70 + 2.80
NOV    2010 + 11                                            MAR   149.15 + 2.75
JAN     2017 + 11                                            MAY   150.20 + 2.75