Coffee Market Report April 15 2019

15th. 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 decrease their net short sold position within this market by 7.96%; over the week of trade leading up to Tuesday 9th April; to register a new net short sold position of 71,151 Lots. This net short-sold position which is the equivalent of 20,170,993 bags has most likely 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 decrease their net short sold position within the market by 933 Lots over the week of trade leading up to Tuesday 9th April; to register a short-sold position of 32,735 Lots. This net short sold position which is the equivalent of 5,395,833 bags has most likely been increased, 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 broadened on Friday, to register this at 28.63 usc/Lb., while this equates to 30.80% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange registered a decrease by 2,945 bags on Friday, to set these stocks at 2,480,309 bags. There was no change to the number of bags pending grading to the exchange; to register these pending grading stocks at 7,897 bags.

It was a mostly steady to positive day for the commodity markets on Friday, the deadline extension for Brexit conducive to consolidation, at least for the moment, while the US Dollar lost territory against a basket of currencies. It was a positive day for Sugar, Cocoa, Cotton, Copper, Wheat, Corn, Soybean, Platinum and Palladium markets, a comparatively flat day for the Oil markets, Gold, Silver and a negative finish for Orange Juice. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.514% higher; to see this index registered at 409.81. The day starts with the U.S. Dollar trading at 1.308 to Sterling, at 1.131 to the Euro and with the US Dollar buying 3.88 Brazilian Real.

The coffee markets opened the day on a slightly positive note on Friday and both markets held in positive territory during the first few hours. A fresh round of selling activity came to the fore around midsession as the Americas opened the business day and the Brazil Real slipped in value against the US Dollar. The New York market touched a thirteen-year low to bring in resting support and the latter quarter of the session regained ground back to par and briefly into positive territory once again. The London robusta market similarly registered fresh underlying support and the overall positive sentiment across the commodities sector assisted to boost levels in both markets, into positive territory on the close, after a good volume day in London and another hefty volume day in New York, it was a narrowly softer finish in London and in narrowly positive territory in New York, with first notice on 22nd April and New York closed on Friday this week, the markets set the close, as follows:

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

MAY   1,387 - 5                MAY   90.40 + 0.15
JULY   1,418 - 3              JULY   92.95 + 0.25
SEPT  1,441 - 1              SEPT   95.55 + 0.25
NOV    1,462 - 1              DEC    99.45 + 0.20
JAN     1,481 - 1              MAR 103.25 + 0.20
MAR    1,501 Unch          MAY 105.70 + 0.20
MAY    1,523 + 1              JULY 107.95 + 0.20
JULY    1,544 + 1             SEPT 110.10 + 0.20
SEPT   1,564 + 1             DEC 113.25 + 0.20
NOV    1,582 + 1             MAR 116.35 + 0.20