Coffee Market Report September 26 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 45.83% over the week of trade leading up to Tuesday 19th September; to register a new net short sold position of 16,482 Lots.   Meanwhile the longer term in nature Index Fund sector of this market increased their net long position within the market by a nominal 477 Lots to register a net long position of 35,734 Lots on the day.

Over the same week, 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 latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Non-Commercial sector of this market increase their net short position within this market by 1,568 Lots, during the week of trade leading up to Tuesday 19th September; to register a net short sold position of 1,877 Lots.  This net short sold position which is the equivalent of 312,833 bags has most likely been increased following the period of mixed but mostly buoyant trade, which has since followed.

The November to December contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 40.55 usc/Lb., while this equates to 30.83% 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 6,953 bags yesterday; to register these stocks at 1,805,850 bags.  There was meanwhile an increase by 14,974 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 66,011 bags.

It was a mixed day on the commodity markets on Friday, the latest round of political foibles during the United Nations gatherings, left market sentiment uncertain while the leading in influence Oil markets had a positive day and the U.S. Dollar posted a recovery on the day.  It was a firm day for Oil, Cotton, Wheat, Gold, Silver, and Platinum markets.  It was a softer day for Sugar, Cocoa, Coffee, Copper, Orange Juice, Soybean and Palladium markets. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.077% higher to see this Index registered at 407.64.  The day starts with the U.S. Dollar near to steady and trading at 1.347 to Sterling and at 1.185 to the Euro, while North Sea Oil is showing a degree of buoyancy and selling at US$ 60.17 per barrel.

The coffee markets started the day on a mildly softer track in London and with selling activity waiting above the market in New York, a quick gap lower at the outset for this market yesterday.  The day progressed within a limited range of trade for both markets once the floor was set, below par, with a few attempts toward the positive met with fresh seller activity at the top.  The news of wetter weather to come to the Brazil coffee belt was received as somewhat of a dampener to the speculative bulls within the markets and the latter day brought in another bout of selling activity to push the New York market to the low on the close of the day.  The last hour in London saw this market register a quick turnaround in technical trade to break through par and into the positive albeit briefly and in modest volume of trade this market finished the day on a marginally positive note.  The markets set the close yesterday, near the low of the day in New York and just above unchanged in London, as follows:

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

SEP    2025 – 3  
NOV   2006 + 1                                              DEC   131.55 – 2.90
JAN    1982 + 3                                             MAR   135.15 – 2.95
MAR   1974 + 4                                             MAY   137.55 – 2.90
MAY   1984 + 4                                             JUL    139.80 – 2.90 
JUL    2011 + 3                                             SEP    142.05 – 2.85
SEP    2019 + 3                                             DEC   145.35 – 2.85
NOV   2029 + 3                                             MAR   148.55 – 2.85
JAN    2038 + 3                                             MAY   150.55 – 2.85
MAR   2043 + 3                                             JUL    152.55 – 2.75