Coffee Market Report February 06 2019

The National Coffee Growers Federation in Colombia have reported that the country’s coffee production for the month of January at 14.60% above that of the same month last year, at a total 1,300,000 bags. as 4,000 bags or 0.31% lower than the same month last year, at a total of 1,296,000 bags. This has contributed to the countries cumulative production for the first four months of the present October 2018 to September 2019 coffee year to be 93,000 bags or 1.83% lower than the same period in the previous coffee year, at a total of 4,965,000 bags.

The National Coffee Growers Federation in Colombia have also reported that the country’s coffee exports for the month of January were 6.45% higher than the same month last year, at a total of 1,204,000 bags. This has contributed to the country’s cumulative coffee exports for the first four months of the present October 2018 to September 2019 coffee year to be 190,000 bags or 4.06% higher than the same period in the previous coffee year, at a total of 4,867,000 bags.

The May to May contracts arbitrage between the London and New York markets widened yesterday, to register this at 37.33 usc/Lb., while this equates to 35.60% 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 825 bags yesterday; to register these stocks at 2,476,953 bags. There was meanwhile a sizable increase in by 41,599 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 59,378 bags.

The commodity markets were mixed in trade yesterday, the Asian markets closed this week while markets in the US waited out the State of the Union address. The U.S. Dollar gained ground against a basket of other currencies, with leading in influence Oil markets, lower on the day. It was a softer day for Sugar, Coffee and Cocoa markets, Gold steady, and a softer day for Silver and Platinum. The rest of the board steady to mildly positive with Cotton, Copper, Orange Juice, Wheat, Corn, Soybean and Palladium markets in positive territory. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.124% lower; to see this index registered at 402.62. The day starts with the U.S. Dollar steady and trading at 1.295 to Sterling, at 1.139 to the Euro and the U.S. Dollar buying 3.669 Brazilian Real.

The London market started the day yesterday trading in marginally positive territory, followed by a similar mildly positive opening in New York. The mid morning progressed in fair volume and within a narrow range in both markets, steady in mildly positive territory, which held toward afternoon, to slip back to unchanged. The latter session saw both markets gradually lose ground to be trading in negative territory which in the took on some pace in London toward the last hour of the day. Although active volumes recorded in both markets, levels were held within a tight range throughout the session, to see the markets finish in softer territory and both markets treading around the market lows of the day, on the close, as follows:

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

MAR   1,535 - 21                     MAR  104.85 - 0.75
MAY   1,557 - 21                      MAY  107.95 - 0.70
JULY   1,575 - 20                     JULY 110.55 - 0.75
SEPT  1,593 - 20                     SEPT 113.25 - 0.80
NOV    1,612 - 19                     DEC  117.00 - 0.95
JAN    1,629 - 19                      MAR 120.80 - 0.95
MAR   1,648 - 19                     MAY  123.20 - 0.95
MAY    1,667 - 19                    JULY  125.35 - 1.00
JULY   1,683 - 19                    SEPT 127.40 - 1.00
SEPT  1,701 - 19                    DEC  130.40 - 1.00