Coffee Market Report June 28 2019

25th. June, 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 9.02% over the week of trade leading up to Tuesday 18th. June; to register a new net short sold position of 35,370 Lots. Meanwhile the longer term in nature Index Fund sector of this market decreased their net long position within the market by a marginal 225 Lots, to register a net long position of 40,511 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 2.04%; over the week of trade leading up to Tuesday 18th. June; to register a new net short sold position of 40,168 Lots. This net short-sold position which is the equivalent of 11,387,450 bags has most likely been marginally decreased again, following the period of mixed but overall more positive trade that has since followed.

The European Coffee Federation have reported European coffee stocks held in main coffee warehouses in ports of Antwerp, Hamburg, Genoa, Le Havre, Trieste and Barcelona, posted an increase of 232,620 bags in the month of April, or 2% higher on that of March, to register these European coffee stocks at a total equivalent of 11,598,230 bags.

The September to September contracts arbitrage between the London and New York markets widened yesterday, to register this at 38.50 usc/Lb., while this equates to 37.38% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 10,713 bags yesterday; to register these stocks at 2,387,820 bags. There was meanwhile a drawdown of 14, 097 bags from the pending grading stocks for this exchange; to register these pending grading stocks at 915 bags.

There was a mixed reaction in the commodity markets following news of fresh sanctions and heightening political tensions between Iran and the USA. The US Dollar slipped back against a basket of other major currencies, with Oil softer on the day and a stronger day for the Gold markets. It was a lower day for Sugar, Cocoa, Orange Juice markets, a positive finish for Coffee and Wheat, with the rest of the board, mostly on a positive note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets, is 0.735% higher, to see this index registered at 395.71. The day starts with the U.S. Dollar steady and trading at 1.275 to Sterling, at 1.139 to the Euro and with the US Dollar buying 3.826 Brazilian Real.

The London market started the day on a softer note yesterday, with the New York market trading around par. The New York market registered an incremental upward momentum in the early morning session, to see London recover to par in light volume. The midmorning session in New York saw a degree of selling pressure return to cap the gains and slip back below par. London continued to hold positive traction in the early afternoon, slipping below par briefly. The afternoon session in both markets registered positive upward momentum as the US Dollar lost ground and Brazil Real posted a mild recovery as the day progressed toward the close. The volumes of trade would be considered moderate overall, the arrival of fresh speculative buyer support toward the end of the session pushed the New York market toward a positive close on the day. It was similarly a positive track in London robusta, to lead to a close in both markets near to the high on the day and set the close yesterday, in positive territory as follows:

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

JUL  1389 + 8            JUL 102.00 + 2.20
SEP 1422 + 8            SEP 103.00 + 2.35
NOV 1449 + 7           DEC 106.50 + 2.25
JAN  1473 + 6           MAR 110.10 + 2.30
MAR 1496 + 5           MAY 112.20 + 2.30
MAY 1520 + 4           JUL  1 14.00 + 2.25
JUL  1538 + 4            SEP 115.85 + 2.25
SEP 1557 + 4            DEC 118.80 + 2.25
NOV 1573 + 5           MAR 121.70 + 2.20
JAN 1588 + 5            MAY 123.50 + 2.10