Coffee Market Report June 28 2019


27th. June, 2019.
The September to September contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 41.00 usc/Lb., while this equates to 38.66% 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 6,250 bags yesterday; to register these stocks at 2,381,165 bags. There was a decline in the number of bags pending grading stocks for this exchange, 915 bags; to register these pending grading stocks at 3,134 bags yesterday.

The commodity markets had a mixed day yesterday, speculation swirling around the likelihood, or not, of an interest rate hike to be announced by the US Federal Reserve next month, the US Dollar regained ground on the day ahead of the G20 summit meetings set to start today. It was a positive day for the Oil markets, Cotton, Wheat, Platinum, Palladium and a softer day for Cocoa, Coffee, Copper, Orange Juice, Corn, Sugar, Soybean, Gold and Silver markets. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets, is 0.032% lower, to see this index registered at 397.43. The day starts with the U.S. Dollar steady and trading at 1.267 to Sterling, at 1.135 to the Euro and with the US Dollar buying 3.843 Brazilian Real.

London opened on a softer note, followed by a similarly lower track on the opening in New York yesterday. There mornings volumes of trade were relatively light in both markets which remained steady around unchanged ahead of the Americas opening for their business day. The market in New York tracked higher with the support of technical buying activity and the London robusta market gradually followed suit as New York broke through par into positive territory toward midsession where both markets trading in a narrow range, New York in positive territory and London around par. The afternoon swayed in favour of seller volumes and both markets tracked lower as resting stops triggered along the way, underlying buyer support lent a degree of support as the markets recouped losses toward the end of the session, to set a close in both markets in negative territory, around the middle of the days range in New York and nearer to the lows of the day in London, the markets finished the day yesterday, as follows:

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

JUL 1402 – 14       JUL 104.90 – 1.55
SEP 1434 – 21      SEP 106.05 – 1.40
NOV 1461 – 19      DEC 109.60 – 1.45
JAN 1486 – 20      MAR 113.20 – 1.45
MAR 1509 – 20     MAY 115.25 – 1.45
MAY 1533 – 20     JUL 117.10 – 1.45
JUL 1552 – 20      SEP 118.95 – 1.40
SEP 1571 – 20      DEC 121.85 – 1.40
NOV 1586 – 20     MAR 124.80 – 1.30
JAN 1601 – 20      MAY 126.80 – 1.30