Coffee Market Report September 26 2017

22nd. September, 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 40.47% during the week of trade leading up to Tuesday 19th. September; to register a net short sold position of 19,273 Lots on the day. This net short-sold position which is the equivalent of 5,463,895 bags has most likely been marginally reduced, following the period of mixed but overall 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 43.50 usc/Lb., while this equates to 32.35% 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 2,508 bags yesterday; to register these stocks at 1,812,803 bags.  There was meanwhile an increase by 2,464 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 51,037 bags.

The commodity markets had a mixed day on Friday, with renewed tensions between North Korea and the United States contributing toward a lack of confidence for the day.  The U.S. Dollar posted a softer day.  It was a mixed day on the Oil markets, Light Crude mildly minus and Brent marginally plus, a lower day overall for Sugar, Cocoa and Coffee, Orange Juice had a lower day, as did Wheat and Platinum, it was an unchanged day for Silver, and a more positive result in Gold, Palladium, Cotton, Copper, Corn and Soybean markets on the day. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.30% lower, to see this Index registered at 409.29.  The day starts with the U.S. Dollar near to steady and trading at 1.354 to Sterling and at 1.191 to the Euro, while North Sea Oil is showing a degree of buoyancy and selling at US$ 58.11 per barrel.

The coffee markets started the day on a positive trajectory in both markets, which opened the day in light trade in a degree of buoyancy.  The highs of the session were touched in the first quarter of the session in both markets and the much lower in volume day in London turn softer by midsession.  The New York market had a more choppy morning, in a continuation of early buoyancy and trading mostly in positive territory although with volume selling appearing occasionally at the highs to take the wind out of the speculative sails by the afternoon.  The afternoon session broke through par in both markets with London briefly back into positive territory toward the end of the day, New York steadied out just below par to maintain this track to the end of the day.  It was a softer close for both markets the overall lower macro apparently providing little inspiration to what was a modest volume day in London and a fair volume day in New York, to set the close in both markets on a softer note, just above the lows of the day, as follows:

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

SEP    2028 – 7  
NOV   2005 – 7                                              DEC   134.45 – 0.55
JAN    1979 – 9                                             MAR   138.10 – 0.45
MAR   1970 – 10                                           MAY   140.45 – 0.45
MAY   1980 – 10                                           JUL    142.75 – 0.45 
JUL    2008 – 9                                             SEP    144.90 – 0.45
SEP    2016 – 9                                             DEC   148.20 – 0.45
NOV   2026 – 9                                             MAR   151.40 – 0.45
JAN    2035 – 9                                             MAY   153.40 – 0.45
MAR   2040 – 9                                             JUL    155.30 – 0.50