Coffee Market Report July 24 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 25.12% during the week of trade leading up to Tuesday 18th July; to register a net short sold position of 30,740 Lots on the day. This net short-sold position which is the equivalent of 8,714,653 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 on Friday, to register this at 39.34 usc/Lb., while this equates to 28.81% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange reported 275 bags lower on the day to register these stocks at 1,541,750 bags. There was an increase of 1,500 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 27,391 bags.

The commodity markets had a mixed day on Friday, the U.S. Dollar lost ground against a basket of currencies on the day. It was a lower day in the Oil markets, yesterday, with the Euro trading firmer against a basket of other currencies and the oil markets choppy on the day. It was a mildly softer day for Oil, Wheat and Sugar markets, whereas a positive day posted for Cocoa, Coffee, Corn, Soybean, Gold, Silver, Platinum and Palladium markets. The Reuters Equal Weight Continuous Commodity Index registered a decrease of 0.2851% on the day to register at 405.04. The day starts with the U.S. Dollar steady and trading at 10299 to Sterling and at 1.162 to the Euro, while North Sea Oil is steady and is selling at US$ 46.88 per barrel.

The London market started the day in positive territory from the opening bell, with speculative buy stops pushing the market upward through a gap and into a new trading range, once in this position London settled to either side of unchanged for the rest of the day. It was a mixed start in New York which saw this market tread in positive territory near to par for the early morning session. The arrival of fresh buying activity became evident as the America’s came to the floor which after a brief spurt higher, similarly led to New Yokr settling in to the afternoon session in a newly established level and steady on either side of unchanged as the day progressed toward the close. It was an overall positive day for the markets, which set the close after a fair volume day, as follows:

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

JUL 2167 + 38
SEP 2143 + 30 SEP 136.55 + 1.55
NOV 2125 + 29 DEC 140.10 + 1.55
JAN 2100 + 26 MAR 143.60 + 1.60
MAR 2087 + 24 MAY 145.85 + 1.65
MAY 2096 + 24 JUL 147.95 + 1.65
JUL 2113 + 23 SEP 150.00 + 1.65
SEP 2123 + 23 DEC 152.85 + 1.65
NOV 2136 + 23 MAR 155.65 + 1.65
JAN 2143 + 23 MAY 157.20 + 1.65