Coffee Market Report July 09 2018

6th. July, 2018.

The September 2018 to September 2018 contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 34.81 usc/Lb., while this equates to 31.89% 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 1,520 bags yesterday; to register these stocks at 2,062,981 bags. There was meanwhile an increase of 550 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 14,373 bags.

It was a mixed day on the commodities market yesterday, the first trading day after the USA Independence Day holiday and markets started the day with focus once more on the tariff tensions scaling up a notch between the USA and China. It was a softer day for the Oil markets, Corn, Coffee, Copper, Cotton, Soybean, Silver and a mildly improved close for Cocoa, Sugar, Orange Juice, Wheat, Gold, Platinum and Palladium. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets finished lower by 0.215% on the day to register at 417.87. The day starts with the U.S. Dollar steady, trading at 1.323 to Sterling, at 1.170 to the Euro and with the Dollar buying 3.924 Brazilian Real, while North Sea Oil is near to steady in early trade and is selling at US$ 76.53 per barrel.

The London market opened the day on a marginally softer note yesterday, with New York opening slightly above par and steady in the early morning session. The trend turned softer in mid morning to see both New York and London in negative territory in good volume, holding levels relatively steady as the day progressed. The general overall macro turned softer as the day progressed with the added influence of a softer Brazil Real and large clips of speculative and fund seller activity adding volume to the day to apply additional pressure to the markets, triggering sell stops along the way. The latter afternoon brought commercial and speculative buying activity back to floor to halt the slide and set a new trading range in a narrow range to finish the day. The close in both markets was on a softer note but within the last few minutes of the day holding steady to see both markets finish just above the lows set, after a fair to good volume day in New York and a modest to fair volume day in London, the close registered in both markets yesterday, as follows:

London Robusta US$/Mt New York Arabica Usc/Lb.

JULY  1,703 - 36   JULY 106.30 - 2.05
SEPT 1,639 - 50   SEPT 109.15 - 2.75
NOV   1,634 - 47   DEC 112.60 - 2.70
JAN   1,638 - 47   MAR 116.15 - 2.70
MAR   1,649 - 46   MAY 118.60 - 2.65
MAY   1,664 - 45   JULY 121.00 - 2.65
JULY 1,677 - 42   SEPT 123.35 - 2.55
SEPT 1,690 - 40   DEC 126.75 - 2.25
NOV   1,703 - 40   MAR 130.15 - 2.10
JAN   1,714 - 40   MAY 132.25 - 1.90