Coffee Market Report April 15 2019

8th. April, 2019.
The latest Commitment of Traders report from the New York arabica coffee market has seen the Non-Commercial Speculative sector of this market increase their net short sold position within this market by 1.02%; over the week of trade leading up to Tuesday 2nd April; to register a new net short sold position of 77,303 Lots. This net short-sold position which is the equivalent of 21,915,058 bags has most likely been further increased, following the period of overall negative trade that has since followed.

The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Managed Money Sector of this market increase their net short sold position within the market by 12.80% during the week of trade leading up to Tuesday 2nd April; to register a short-sold position of 33,668 Lots. This net short sold position which is the equivalent of 5,611,334 bags has most likely been increased again, following the period of mixed but overall softer trade that has since followed.

The July to July contract arbitrage between the London and New York markets narrowed on Friday, to register this at 30.57 usc/Lb., while this equates to 31.93% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange registered an increase of 282 bags on Friday 5th April, to set these stocks at 2,493,082 bags. There was a small decrease by 221 bags in the number of bags pending grading for this exchange; to register these pending grading stocks at 5,640 bags.

The commodity markets had a mixed day of trade on Friday, with the leading in influence Oil markets stronger on the day. The markets responded positively to the latest round of upbeat employment data to come from the USA and the US Dollar firm on the day. It was a positive finish in the Oil markets, Sugar, Cocoa, Cotton, and Palladium markets, the rest of the board in negative territory; Coffee, Copper, Orange Juice, Wheat, Corn, Soybean, Gold Platinum and Palladium lower on the close. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.034% higher; to see this index registered at 412.34. The day starts with the U.S. Dollar trading at 1.306 to Sterling, at 1.122 to the Euro and with the US Dollar buying 3.872 Brazilian Real.

The London market opened the day on a softer note, followed by a mildly lower opening in New York, modestly buoyant opening in New York. Both markets set a softer track heading into midsession as the America’s came to the floor to contribute volume to the momentum. The London robusta market found underlying buyer support as the afternoon progressed, to briefly retrace a portion of the earlier losses and slip lower once more toward the latter end of the session. The New York market found a new floor fairly early in the day and steadied at the new low to trade either side of sideways to the end of the day, a marginal recovery noted toward the end of the session. With both markets looking softer ahead of the close, the last hour in London saw fresh lows and this market closed on the low of the day, while New York softer on the day found last minute support and finished on an upward track, above the lows of the day, to set the close in both markets after a fair volume day in London and a heavy volume day in New York on Friday, as follows:

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

MAY   1,420 - 28             MAY     93.20 - 2.10
JULY  1,437 - 28             JULY    95.75 - 2.05
SEPT 1,452 - 29             SEPT    98.20 - 2.10
NOV   1,470 - 28             DEC  102.00 - 2.05
JAN    1,488 - 27             MAR  105.80 - 2.00
MAR   1,506 - 26             MAY  108.25 - 2.00
MAY    1,525 - 26            JULY 110.50 - 1.95
JULY   1,544 - 27            SEPT 112.60 - 1.95
SEPT  1,564 - 26            DEC  115.70 - 1.95
NOV    1,582 - 26            MAR 118.80 - 2.00