Coffee Market Report July 10 2017

The latest Commitment of Traders report from the New York arabica coffee market has seen the Non-Commercial Speculative sector of this market decrease their net short sold position within the market by 4.58% during the week of trade leading up to Tuesday 4th July; to register a net short sold position of 40,596 Lots on the day.  This net short-sold position which is the equivalent of 11,508,966 bags has most likely been little changed to perhaps marginally decreased, following the period of mixed trade, which has since followed.

The September to September contracts arbitrage between the London and New York markets widened yesterday, to register this at 33.14 usc/Lb., while this equates to 25.71% 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 6,948 bags on Friday; to register these stocks at 1,530,706 bags.  There were meanwhile a larger in number 10,193 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 35,407 bags.

It was a mixed, mostly softer day for the commodity markets on Friday, positive economic data released from the leading consumer market, U.S.A., and a firmer U.S. Dollar on the day. It was a softer day for the Oil markets and so too a softer day for Cocoa, Copper, Coffee Orange Juice, Wheat, Soybean, Gold, Silver, Platinum and Palladium markets.  The Corn and Sugar markets finished in positive territory and Cotton, steady on the day. The Reuters Equal Weight Continuous Commodity Index registered a lower 0.766% result on the day and registered at 399.96.  The day starts with the U.S. Dollar steady and trading at 1.2892 to Sterling and at 1.14 to the Euro, while North Sea Oil is steady and is selling at US$ 46.31 per barrel.

The coffee markets opened the day on Friday on a mildly positive note in both markets which was relatively short lived in London and this market subjected to early morning selling activity in a vacuum quickly slipped through stops along the way and set a new, lower trading range for the rest of the session.  It was a similarly softer day in New York although the range of trade remained limited and this market having lost ground during the morning session, managed to recover back to positive territory toward the latter half of the day.  The afternoon trade steadied in London and this market settled into a very narrow range for the rest of the day.  Another push to below par in New York right at the end of the session on Friday, set the close on a mildly softer note and with London, having lost much of the ground in the first half of that session, a softer close on Friday, as follows:

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

JUL    2146 – 36                                      JUL    126.55 – 0.20  
SEP    2111 – 39                                      SEP   128.90 – 0.20
NOV   2094 – 40                                      DEC   132.40 – 0.20
JAN    2072 – 35                                      MAR   135.80 – 0.25
MAR   2057 – 36                                      MAY   138.10 – 0.25
MAY   2061 – 34                                      JUL     140.30 – 0.25
JUL    2077 – 34                                      SEP    142.40 – 0.20
SEP    2090 – 34                                     DEC    145.30 – 0.10
NOV   2097 – 34                                     MAR    148.05 – Unch
JAN    2104 – 34                                     MAY    151.00 + 0.10