Coffee Market Report July 11 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 decrease their net short sold position within the market by 2.39% over the week of trade leading up to Tuesday 4th. July; to register a new net short-sold position of 42,576 Lots.   Meanwhile the longer term in nature Index Fund sector of this market decreased their net long position within the market by a marginal 217 Lots, to register a net long position of 32,595 Lots on the day.

Over the same week, the Non-Commercial Speculative sector of this market increase 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 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 1.04% during the week of trade leading up to Tuesday 4th. July; to register a net long position of 21,703 Lots.  This net long position which is the equivalent of 3,617,167 bags has most likely been little changed to perhaps marginally decreased again, following the period of mixed but overall more positive trade that has since followed.

The September to September contracts arbitrage between the London and New York markets widened yesterday, to register this at 33.34 usc/Lb., while this equates to 26.34% 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 4,750 bags yesterday; to register these stocks at 1,535,456 bags.  There were 359 bags reduction to the number of bags pending grading for this exchange; to register these pending grading stocks at 35,048 bags.

It was a mixed day for the commodity markets yesterday, the U.S. Dollar steady on the day and the energy markets setting a more positive trend.  It was similarly a positive day for Copper, Orange Juice, Wheat, Corn, Soybean markets.  It was a lower day for Sugar, Cocoa, Coffee, Cotton, Gold, Silver, Platinum and Palladium. The Reuters Equal Weight Continuous Commodity Index registered an improved 0.2165% result on the day and registered at 400.82.  The day starts with the U.S. Dollar steady and trading at 1.2878 to Sterling and at 1.139 to the Euro, while North Sea Oil is steady and is selling at US$ 46.48 per barrel.

The coffee markets opened the day yesterday with a degree of buoyancy although in relatively thin trade at the start of the session.  Both London and New York maintained a positive stance for the morning, which in London was sustained until the America’s opened their business day and both markets took a turn to negative.  The markets touched upon the low of the day by the middle of the session in to bring underlying buying support back to prop up the floor. The latter half of the day and with the Brazil Real registering a firmer day against the US Dollar, encouraged an upturn and in New York another attempt to drive higher met with little resistance to push this market back into positive territory, which slipped back to lose some ground but clamber back toward positive toward the end of the day in this market.  The London market which in less volume took a more positive stance in the latter half of the day, posted gradual improvement from the lows of the day, but could not quite reach postivie territory by the end of the session in this market.  The close yesterday in both markets, on a buoyant mildly softer note, set as follows:

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

JUL    2135 – 11                                         JUL   126.25 – 0.30  
SEP    2100 – 11                                        SEP   128.60 – 0.30
NOV   2086 – 8                                          DEC   132.15 – 0.25
JAN    2067 – 5                                          MAR   135.55 – 0.25
MAR   2055 – 2                                          MAY   137.85 – 0.25
MAY   2061 Unch                                      JUL    140.05 – 0.25
JUL    2078 + 1                                          SEP    142.10 – 0.30
SEP    2091 + 1                                         DEC    145.05 – 0.25
NOV   2098 + 1                                         MAR    147.80 – 0.25
JAN    2105 + 1                                         MAY    149.40 – 0.20