Coffee Market Report September 27 2018

27th. September, 2018.

The November 2018 to December 2018 contracts arbitrage between the London and New York markets widened yesterday, to register this at 29.21 usc/Lb., while this equates to 29.88% 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 2,652 bags yesterday; to register these stocks at 2,378,094 bags. There was an increase of 5,877 bags in the number of bags pending grading for this exchange; to register these pending grading stocks at 96,178 bags.

It was a generally lower day for the commodity markets yesterday, the anticipated announcement by the US Federal Bank and confirmation of interest hike following the midweek meetings, contributed to a degree of stability, while US Dollar firmed against a basket of other major currencies. It was a softer day for the Oil markets, Sugar, Cocoa, Corn, Wheat, Cotton, Copper, Gold and Silver and a more positive day for Soybean, Wheat, Coffee, Platinum and Palladium. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.606% lower; to see this index registered at 403.76. The day starts with the U.S. Dollar steady and trading at 1.3153 to Sterling, at 1.174 to the Euro and the US Dollar buying 4.03 Brazilian Real, while North Sea Oil is steady in early trade and selling at US$ 82.44 per barrel.

The coffee markets started the day yesterday on a positive note in London followed by a mildly positive start in New York with the latter market in good starting volumes at the outset and the markets traded around unchanged for the first quarter of the session. The morning progressed to register a degree of downward pressure but with London managing to recover to par and stay within a narrow range to the end of the day, New York posted incremental positive moves as the America’s opened for their business day, to see this market climb progressively to the high of the day in the last quarter of the session. Renewed selling pressure returned to New York toward the close, to register the close in positive territory closer to the middle of the days trading range, after a fair volume day. The London robusta market posted a last minute recovery from below par, to finish the light volume and rangebound day, just above par, to set the close in both markets yesterday in positive territory, as follows:

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

NOV  1,511 + 4                 DEC   97.75 + 0.65
JAN   1,508 + 4                MAR 101.15 + 0.70
MAR  1,524 + 5                MAY 103.50 + 0.60
MAY   1,539 + 5               JULY 105.85 + 0.55
JULY  1,553 + 5               SEPT 108.20 + 0.50
SEPT 1,570 + 5               DEC 111.60 + 0.45
NOV   1,585 + 4               MAR 114.95 + 0.45
JAN   1,599 + 5                MAY 117.10 + 0.50
MAR   1,615 + 5               JULY 118.90 + 0.50