Coffee Market Report August 09 2017

8th August, 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 48.10% over the week of trade leading up to Tuesday 1st August; to register a new net short-sold position of 11,296 Lots.   Meanwhile the longer term in nature Index Fund sector of this market increased their net long position within the market by 0.55%, to register a net long position of 33,411 Lots on the day.

Over the same week, the Non-Commercial Speculative sector of this market decreased their net short sold position within this market by 40.35%, to register a net short sold position of 14,735 Lots.  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 and likewise, that of the Managed Money fund sector of the market.

The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Non-Commercial sector of this market increase their net long position within this market by 10.48% during the week of trade leading up to Tuesday 1st August;  to register a net long position of 22,791 Lots.  This net long position which is the equivalent of 3,798,500 bags has most likely been marginally increased again, following the period of mixed but overall more positive trade that has since followed.

The November to December contracts arbitrage between the London and New York markets widened yesterday, to register this at 47.71 usc/Lb., while this equates to a 32.78% price discount for the London Robusta coffee market. 

The Certified washed Arabica coffee stocks held against the New York exchange were seen to decrease by 275 bags yesterday; to register these stocks at 1,563,528 bags.  There were meanwhile a larger in number 34,371 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 93,219 bags.

The commodity markets were mixed yesterday, with general positive global economic signals and buoyant indicators from Asia boosted confidence, the U.S. Dollar however edged lower on the day, while the Oil markets slipped back from recent highs.  It was a positive day for Coffee, Cocoa, Cotton, Copper, Wheat, Corn, Soybean markets, a steady day for Gold and positive close in Silver, Platinum and Palladium on the day.  The losers on the close were the Oil markets and Orange Juice.  The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.27% higher, to see this Index registered at 408.16.  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 selling at $ 52.01 per barrel.

The coffee markets opened the day yesterday with the London market remaining close to par, while the New York market started the day on a mildly softer note.  Both markets soon started to register incremental gains as the early morning progressed and build upon the gains as volume increased into the markets by midsession.  The latter day trend in both markets continued to post gains in London which led to this market closing the day on the highs, whereas the New York market with a new positive trading range established, settled into a narrow trading range for most of the afternoon session, to see this market finish the day close off the highs of the session on a buoyant note.  The close yesterday in both markets after another hefty volume day in New York and a relatively average volume day in London, was on a firmer note, as follows:

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

SEP    2163 + 22                                              SEP    142.05 + 1.90
NOV   2157 + 24                                              DEC    145.55 + 1.85
JAN    2132 + 25                                              MAR   149.10 + 1.85
MAR   2118 + 24                                              MAY   151.35 + 1.85
MAY   2124 + 22                                              JUL    153.40 + 1.85
JUL    2141 + 23                                              SEP    155.40 + 1.85
SEP    2150 + 23                                              DEC   158.20 + 1.75
NOV   2158 + 23                                              MAR   160.95 + 1.80
JAN    2164 + 23                                              MAY   162.60 + 1.85
MAR   2169 + 23                                              JUL    164.05 + 1.90