Coffee Market Report April 15 2019

9th. April, 2019.
The latest Commitment of Traders report from the New York arabica coffee market has seen the shorter term in nature Managed Money fund sector of this market increase their net short sold position within the market by 1.03% over the week of trade leading up to Tuesday 2nd April; to register a new net short sold position of 80,505 Lots. Meanwhile the longer term in nature Index Fund sector of this market decreased their net long position within the market by 0.01%, to register a net long position of 34,808 Lots on the day.

Over the same week, the Non-Commercial Speculative sector of this market increased their net short sold position within this market by 1.02%; 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 and likewise, that of the Managed Money Fund sector of the market.

The July to July contract arbitrage between the London and New York markets narrowed yesterday, to register this at 30.09 usc/Lb., while this equates to 31.51% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange were unchanged yesterday, to set these stocks at 2,493,082 bags. The number of bags pending grading for the exchange posted an increase of 319 bags; to register these pending grading stocks at 5,959 bags.

It was a mixed day for the commodity markets yesterday, the Oil markets had a stronger day amidst concerns of prospective OPEC supply reduction and the rising conflict in Libya. The US Dollar had a softer day against a basket of other major currencies. It was a positive finish in the Oil markets, Cocoa, Cotton, Copper, Soiybean, Cold, Silver, Platinum and Palladium markets. It was a significantly softer day for Orange Juice, and a lower close for Sugar, Wheat, and Corn markets, The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is flat on the day; to see this index registered at 412.33. The day starts with the U.S. Dollar trading at 1.307 to Sterling, at 1.126 to the Euro and with the US Dollar buying 3.848 Brazilian Real.

The coffee markets opened the day on a mildly buoyant note although the London robusta market turned softer, the New York arabica market held within a positive range at the outset. The positive momentum took an about turn as the America’s opened for their business day to see both markets in negative territory around midsession. The change in fortunes of the US Dollar on the day and the firmer Brazil Real contributed toward a stronger performance in the latter half of the day, as both markets registered a recovery to regain the losses and move back to par as the day drew to a close. It was another hefty volume day in the New York market which despite the volume registered saw a relatively narrow day’s range of 1.70 usc/Lb., between the high and the low on the second month. The overall volume in London was moderate to fair, this market found last minute buying support to touch the high of the day but fall back on the close, 1.62% above the low on the day, to set the close yesterday, as follows;

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

MAY    1,426 + 6               MAY   92.95 - 0.25
JULY   1,442 + 5               JULY  95.50 - 0.25
SEPT  1,455 + 3               SEPT 98.00 - 0.20
NOV    1,474 + 4              DEC 101.85 - 0.15
JAN     1,493 + 5              MAR 105.60 - 0.20
MAR    1,512 + 6              MAY 108.05 - 0.20
MAY     1,532 + 7             JULY 110.35 - 0.15
JULY    1,553 + 9             SEPT 112.45 - 0.15
SEPT   1,573 + 9              DEC 115.55 - 0.15
NOV     1,591 + 9             MAR 118.75 - 0.05