Coffee Market Report May 22 2019

The coffee markets remain devoid of any supportive fundamental news, but with the Brazil Real coming back from the previous day’s lows, there was apparently some speculative short covering activity within the markets yesterday.   This accompanied by industry price fixation buy stops, saw the markets bounce back from the early negative track and take a relatively strong track for later in the day’s trade.    

The July to July contracts arbitrage between the London and New York markets broadened yesterday, to register this at 30.33 usc/Lb., while this equates to 32.65% 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 960 bags yesterday; to register these stocks at 2,437,372 bags.  There was meanwhile no change to the number of bags pending grading for this exchange; to register these pending grading stocks at 1,489 bags. 

The Certified Robusta coffee stocks held against the London exchange were seen to increase by 14,500 bags or 0.72%over the week of trade leading up to Monday 20th. May, to see these stocks registered at 2,019,333 bags, on the day. 

The commodity markets were mixed in trade yesterday, to see the overall macro commodity index taking something of a sideways track for the day.  The Brent Oil, Sugar, Cocoa, Coffee, Wheat and Corn markets ended the day on a positive note, while the U.S. Oil, Natural Gas, Cotton, Copper, Orange Juice, Soybean, Gold and Silver markets ended the day on a softer note.  The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets, is 0.04% lower, to see this index registered at 393.44.   The day starts with the U.S. Dollar steady and trading at 1.270 to Sterling, at 1.115 to the Euro and with the US Dollar buying 4.039 Brazilian Real. 

The London market ended the day on a positive note and with 96.8% of the earlier gains of the day intact, while the New York market likewise ended the day on a positive note and with 87% of the earlier gains of the day intact.  This positive close might along with the steady nature of the Brazil Real assist towards some degree of confidence, to set the markets for a near to steady start for early trade today, against the prices set yesterday, as follows: 

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

MAY   1344 + 30

JUL    1364 + 30                                            JUL       92.90 + 3.00

SEP    1385 + 31                                            SEP      95.15 + 2.90

NOV   1408 + 31                                            DEC      98.65 + 2.85

JAN    1428 + 29                                            MAR   102.10 + 2.75

MAR   1447 + 28                                            MAY   104.40 + 2.70

MAY   1467 + 27                                            JUL     106.45 + 2.60

JUL    1487 + 26                                            SEP     108.45 + 2.55

SEP    1508 + 26                                            DEC    111.40 + 2.45

NOV   1527 + 26                                             MAR   114.40 + 2.40