Coffee Market Report September 20 2019

The November to December contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 39.38 usc/Lb.  This equates to 40.04% 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 2,754 bags yesterday; to register these stocks at 2,315,599 bags.  There was meanwhile a larger in number 7,165 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 14,382 bags. 

The commodity markets had a mixed day yesterday, absorbed the news of a 25-basis point interest rate cut announced by the US Federal Reserve bank on Wednesday, the US Dollar lost ground yesterday.  Political tension in the Middle East having an influence on sentiment in the volatile Oil markets which registered a mildly positive day, as did Cocoa, Corn, Soybean, Gold, Silver, Platinum and Palladium markets.  It was a softer day for the rest of the board, Sugar, Coffee, Cotton, Copper, Orange Juice, and Wheat markets lower on the close.   The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.125% lower; to see this index registered at 394.47.   The day starts with the U.S. Dollar steady and trading at 1.254 to Sterling, at 1.105 to the Euro and with the US Dollar buying 4.16 Brazilian Real.

The London and New York markets started the day on a mildly softer note which in New York slid lower influenced by speculative selling activity as reports of wetter weather forecasts to come in the next few days to Brazil.  A similar start in London but with buyers waiting at the lows, both markets settled into a lower but steady range to remain within a narrow range into the afternoon.  The Brazil Real dipped in value against the US Dollar to see New York respond and test the lows of the day.  Both markets ended with last minute buoyancy, marginally above the low on the day and after a modest volume day, the coffee markets set the close yesterday on a softer note, as follows:

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

 SEP    1283 – 19                                                     
NOV   1300 – 19                                                      DEC      98.35 – 2.00
JAN    1327 – 19                                                      MAR   101.95 – 2.00
MAR   1353 – 19                                                      MAY   104.25 – 2.00
MAY   1380 – 19                                                      JUL    106.30 – 2.00
JUL    1407 – 17                                                      SEP    108.25 – 1.90
SEP    1434 – 17                                                      DEC   111.20 – 1.80
NOV   1461 – 17                                                      MAR   114.10 – 1.75
JAN    1488 – 17                                                      MAY   116.05 – 1.70
MAR   1512 – 17                                                      JUL    117.95 – 1.60