Coffee Market Report July 08 2017

The September to September contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 32.15 usc/Lb., while this equates to 24.46% 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 5,995 bags on Thursday; to register these stocks at 1,523,758 bags.  There were meanwhile a larger in number 6,680 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 45,600 bags.

It was a mixed day on the commodity markets yesterday, ahead of the G20 summit meetings set to begin in Hamburg today.  The US Dollar slipped back against other major currencies post the release of monthly U.S. employment data yesterday, which despite the positive addition of private sector jobs reported was a figure that was lower than anticipated by the markets. It was a better day for the Oil markets yesterday, which finished on a positive note, as did Sugar, Cotton, Copper, Orange Juice, Soybean and Gold although narrowly.  It was a lower finish for Coffee, Cocoa, Wheat, Corn, Silver, Platinum and Palladium markets yesterday.  The Reuters Equal Weight Continuous Commodity Index registered a lower 0.077% result on the day and registered at 403.05.  The day starts with the U.S. Dollar steady and trading at 1.2954 to Sterling and at 1.14 to the Euro, while North Sea Oil is steady and is selling at US$ 47.05 per barrel.

The coffee markets opened the day yesterday in marginally softer territory and in limited volume which gradually built into a more negative track as the day progressed.  The latter half of the day registered an incremental recovery back toward par, although the range was held within a fairly tight band for the session in both markets, to see the close yesterday after a fair volume session in both markets, in mildly softer territory, to set the close yesterday, as follows:

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

JUL    2182 – 10                                           JUL    126.75 – 0.90  
SEP    2150 – 7                                             SEP   129.10 – 0.90
NOV   2134 – 6                                             DEC   132.60 – 0.80
JAN    2107 – 4                                             MAR  136.05 – 0.75
MAR   2093 – 7                                             MAY  138.35 – 0.75
MAY   2095 – 7                                             JUL    140.55 – 0.75
JUL    2111 – 7                                             SEP    142.40 – 0.75
SEP    2124 – 9                                             DEC   145.40 – 0.75
NOV   2131 – 9                                             MAR   148.10 – 0.75
JAN    2138 – 9                                             MAY   149.60 – 0.85