Coffee Market Report August 07 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 40.35% during the week of trade leading up to Tuesday 1st August; to register a net short sold position of 14,735 Lots on the day. This net short-sold position which is the equivalent of 4,177,372 bags has most likely been further reduced, following the period of more positive trade, which has since followed.

The November to December contracts arbitrage between the London and New York markets narrowed on Friday, to register this at 46.94 usc/Lb., while this equates to a 32.67% 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 5,260 bags on Friday; to register these stocks at 1,563,803 bags.  There were meanwhile a larger in number 34,245 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 58,848 bags.

The commodity markets were mixed on Friday, with the latest round of monthly employment data released by the worlds’ largest consumer nation, U.S.A., interpreted positively by the markets.  It was a mildly positive day for the Oil markets, Corn, Cotton, Copper, Orange Juice and Platinum markets and a softer day for Coffee, Wheat, Soybean, Sugar, Cocoa, Gold, Silver and Palladium markets. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.19% lower, to see this Index registered at 407.05.  The day starts with the U.S. Dollar steady and trading at 1.305 to Sterling and at 1.18 to the Euro, while North Sea Oil is buoyant, selling at $ 52.14 per barrel.

It was a mildly softer start for the day in London robusta and New York arabica on Friday, with outright volumes thin at the outset in London and good early volumes registered at the kick off in New York.  The morning session posted a move back toward positive where both markets remained above par toward midsession.  The incremental gains met with renewed seller activity at the top of the day, with the US Dollar gaining ground against a basket of currencies to lead both markets back to par as the second half of the day progressed and into negative territory as the day drew to a close.  There was another attempt to the positive in the last moments of the day and both markets regained lost ground to break through to positive territory briefly, but in the last moments fell back to just below par, as the markets finished the day after a hefty volume day in New York and a good volume day in London, the markets set the close near unchanged and on a mildly softer note, as follows:


SEP    2141 – 3                            SEP    140.15 – 0.05
NOV   2133 – 1                             DEC   143.70 – 0.10
JAN    2107 – 1                            MAR   147.25 – 0.10
MAR   2094 Unch                            MAY   149.50 – 0.10
MAY   2102 + 1                             JUL    151.55 – 0.10
JUL    2118 + 2                            SEP    153.55 – 0.10
SEP    2127 + 2                            DEC   156.45 – 0.10
NOV   2135 + 2                             MAR   159.15 – 0.10
JAN    2141 + 2                            MAY   160.75 – 0.10
MAR   2146 + 2                             JUL   162.15 – 0.10