Coffee Market Report July 17 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 1.13% during the week of trade leading up to Tuesday 11th July; to register a net short sold position of 41,057 Lots on the day.  This net short-sold position which is the equivalent of 11,767,234 bags has most likely been decreased, following the period of overall firmer trade, which has since followed.

The September to September contracts arbitrage between the London and New York markets widened yesterday, to register this at 36.35 usc/Lb., while this equates to 27.19% 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 5,858 bags on Friday; to register these stocks at 1,549,041 bags.  There was a decline of 4,661 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 7,278 bags.

It was a more positive day for the commodity markets on Friday, the latest round of U.S.A. consumer price data released received with mixed sentiment on the markets, and the U.S. Dollar registered a softer day.  It was a firmer day for the Oil markets, Copper, Gold, Platinum, Palladium, Cocoa, Coffee, Sugar, Cotton, Corn, Soybean, and Wheat mildly positive at the close of the day, a firm close for Gold, Silver, Platinum and Palladium.  It was softer close on the day for Orange Juice. The Reuters Equal Weight Continuous Commodity Index registered a increase of 0.8168% on the day to register at 402.80.  The day starts with the U.S. Dollar steady and trading at 1.3097 to Sterling and at 1.146 to the Euro, while North Sea Oil is steady and is selling at US$ 48.32 per barrel.

The coffee markets started the day in marginally positive territory on Friday with a choppy but incrementally firmer trend in London and a similar graduation to the higher as the session got underway in earnest, in New York.  The lack of producer selling as the Brazil Real firmed against the U.S. Dollar into the afternoon, provided a boost to sentiment which was sustained and held the gains in both markets into the afternoon.  The latter-day market held steady in the higher range for New York which set a close after a hefty volume day, at the higher end of the day’s range and slightly below the high of the day.  The London market experienced a choppier session which followed the New York market higher but with sellers waiting at the top of the market, weighing in at the top in an overall fair volume day.  The positive trend was finally overcome in the last minutes of the day in London to see this market that had traded mostly well above par for the session, finish on a softer note and on the day’s low although narrowly in the positive, to set the close in both markets, on Friday as follows:

JUL    2165 +   1                                      JUL     131.70 + 2.35  
SEP    2146 +   1                                      SEP    133.70 + 2.50
NOV   2130 +   7                                      DEC    137.30 + 2.50
JAN    2107 +   7                                      MAR   140.75 + 2.50
MAR   2089 +   6                                      MAY   142.95 + 2.50
MAY   2094 +   9                                      JUL    145.15 + 2.50
JUL    2109 +   8                                      SEP    147.20 + 2.45
SEP    2119 +  8                                       DEC   150.05 + 2.40
NOV   2132 + 14                                      MAR   152.80 + 2.35
JAN    2139 + 14                                      MAY   154.35 + 2.35