Coffee Market Report October 25 2018
The Uganda Coffee Development Authority, UCDA has reported that the countries coffee exports for the month of September, reached a total 293,199 bags, or 14.2% lower than the same month last year. This has contributed to the country’s cumulative coffee exports for the twelve months of the October 2017 to September 2018 coffee year at 4,304,121 bags or 6.87% lower than the same period in the previous coffee year.
The January 2019 to December 2018 contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 42.37 usc/Lb., while this equates to 35.23% 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 3,128 bags yesterday; to register these stocks at 2,435,448 bags. The bags pending grading for the exchange, registered a decrease by 13,055 bags; to register these pending grading stocks at 59,504 bags.
The commodity markets encountered a firmer US Dollar yesterday, with a mixed day on the markets influenced by uncertainty over the weaker economic indicators out of Italy, unresolved Brexit political wrangling and volatility in the Oil markets in the wake of the intense media focus on Saudi Arabia. It was a softer day for the Oil markets, along with a softer day for Cocoa, Coffee, Copper, Wheat, Corn and Soybean markets, Gold, Silver, Palladium and Platinum all lower on the day, with Sugar and Orange Juice in positive territory. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets settled lower by 0.1958%; to register this index at 414.87. The day starts with the U.S. Dollar steady and trading at 1.289 to Sterling, at 1.141 to the Euro and with the Dollar buying 3.732 Brazilian Real, while North Sea Oil is steady and is selling at US$ 76.19 per barrel.
The London coffee market opened the day on a mildly positive note yesterday, followed by a marginally softer opening in New York and a steady early morning session in modest volume. New York registered an incremental recovery ahead of the business day opening and the Brazil Real lost traction against the the Greenback, the New York arabica market, slipped back to around par. London Robusta maintained a positive stance just above the days’ opening levels. The market in New York, met with additional speculative buying activity as the day progressed to see this market gradually touch on the highs of the day in the latter half of the session, matched with sellers and a softer track as the day drew to a close. The volume of trade in New York registered a hefty 48,046 lots traded in the two front months, whereas a more modest session in volume and range terms in London, saw this market finish the day hardly changed. The markets set the close yesterday, in mildly softer territory as follows:
London Robusta US$/MT New York Arabica Usc/Lb.
NOV 1,688 - 5 DEC 120.25 - 0.85
JAN 1,717 - 2 MAR 124.05 - 0.80
MAR 1,734 - 2 MAY 126.65 - 0.75
MAY 1,750 - 1 JULY 129.00 - 0.75
JULY 1,764 - 1 SEPT 131.30 - 0.70
SEPT 1,778 - 1 DEC 134.55 - 0.75
NOV 1,792 - 1 MAR 137.80 - 0.75
JAN 1,805 - 1 MAY 139.75 - 0.75
MAR 1,819 - 1 JULY 141.45 - 0.75
MAY 1,831 - 1 SEPT 143.05 - 0.70