Coffee Market Report July 20 2017

The September to September contracts arbitrage between the London and New York markets widened yesterday, to register this at 40.09 usc/Lb., while this equates to 29.52% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange were unchanged on the day; to register these stocks at 1,542,475 bags. There was an increase of 2,248 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 31,191 bags.

It was an overall positive day for the commodity markets yesterday, the U.S. Dollar had a steadier day and the oil markets posting higher results on the day. It was a similarly firm day for Sugar, Cocoa, arabica Coffee, Corn, Soybean and Silver markets. It was a softer day for Copper, Cotton, Wheat, Gold, Platinum and Palladium markets. The Reuters Equal Weight Continuous Commodity Index registered a increase of 0.7119% on the day to register at 405.64. The day starts with the U.S. Dollar steady and trading at 1.301 to Sterling and at 1.151 to the Euro, while North Sea Oil is steady and is selling at US$ 48.50 per barrel.

The coffee markets started the day on a softer note yesterday which in the absence of fresh fundamental news, treaded a steady but mildly negative track through the early New York morning. The New York market turned to positive and registered a recovery to positive territory as the America’s came to the floor for their business day but as quickly attracted speculative sellers back to the floor, to push this market below par once more. The London market mirrored New York around the same time with a brief attempt to break through to the positive met with downward technical pressure. With the general macro across commodities seemingly more positive and a steady day for the U.S. Dollar, the arabica market tested another move to the positive toward midsession, where the trend found upward momentum and set a narrowly positive course leading up to the afternoon, but with another round of selling pushing the market below par.

London following a similar track although this market in exceedingly narrow and low volume on the day. Having sustained another push lower, fresh buying returned to the floor within the last hours of trade in New York to see this market recover all the losses of the day and finish on a relatively buoyant note, at the highs of the day. The comparative lack of participation in the London market yesterday was notable with moves hovering just below unchanged for much of the day, this market which as the day drew to a close had very little resistance to another push lower and this into a market devoid of volume, led to a softer close in London, on the day lows, to set the close in both markets yesterday after a good volume and buoyant session in New York and a muted volume and finally softer day in London, as follows;

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

JUL   2125 – 17                       JUL  131.20 – 0.70
SEP  2110 – 21                       SEP 135.80 + 0.90
NOV  2094 – 16                      DEC 139.35 + 0.90  
JAN   2075 – 14                      MAR 142.80 + 0.90
MAR  2063 – 11                      MAY 145.00 + 0.90
MAY  2071 – 10                      JUL  147.10 + 0.85
JUL  2068 – 10                       SEP  149.15 + 0.80
SEP  2098 – 10                      DEC  152.00 + 0.80
NOV  2111 – 10                      MAR 154.80 + 0.85
JAN   2118 – 10                      MAY 156.35 + 0.85