Coffee Market Report September 24 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 decrease their net short sold position within the market by 18.80% over the week of trade leading up to Tuesday 17th. September; to register a new net short sold position of 43,296 Lots.  Meanwhile the longer term in nature Index Fund sector of this market increased their net long position within the market by 7.94%, to register a net long position of 42,255 Lots on the day. 

Over the same week, the Non-Commercial Speculative sector of this market decreased their net short sold position within this market by 16.39%; to register a new net short sold position of 42,056 Lots. This net short-sold position which is the equivalent of 11,922,689 bags has most likely been marginally increased, following the period of mixed but overall softer trade that has since followed and likewise, that of the Managed Money Fund sector of the market. 

The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Managed Money Sector of this market increased their net short sold position within the market by 4.23% over the week of trade leading up to Tuesday 17th. September; to register a short-sold position of 47,357 Lots.  This net short sold position which is the equivalent of 7,892,833 bags has most likely been marginally decreased, following the period of mixed but overall sideways trade that has since followed. 

The November to December contracts arbitrage between the London and New York markets widened yesterday; to register this at 39.30 usc/Lb.  This equates to 39.70% 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 1,863 bags yesterday; to register these stocks at 2,315,511 bags.  There was a decline in the number of bags pending grade to this exchange, by 2,946 bags; to register these pending grading stocks at 15,056 bags.  

It was a mixed day on the commodity markets yesterday, the underlying trade tensions between USA and China lending an influence, while the latest round of economic data to come from the Eurozone were perceived by the markets to be weaker than anticipated.   The US Dollar posted a gain while the Euro lost ground on the day.  The Oil markets posted another positive day.  It was a similarly positive day for Sugar, Cotton, Copper, Coffee, Corn, Soybean, Gold, Silver, Platinum and Palladium, with Cocoa, Orange Juice and Wheat lower on the day.  The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.913% lower; to see this index registered at 397.28.   The day starts with the U.S. Dollar steady and trading at 1.245 to Sterling, at 1.098 to the Euro and with the US Dollar buying 4.162 Brazilian Real.

The coffee markets started the day on a buoyant note yesterday, the London robusta market in narrowly positive territory and New York arabica slightly softer on opening.  The morning progressed with both markets posting positive gains albeit in relatively thin volume and both markets settled in a narrowly sideways trend through to midsession.  A lack of volume in selling activity with origin participation primarily removed from the floor, met with a round of buying activity around the opening of the business day in the America’s to push levels higher in New York around midsession, with sellers appearing at the top to cap the days gains and a steadily lower track set for the afternoon session.  The overall volume in London remained modest and the moves limited to sideways through to the end of the day, to set the close in this market at the higher end, off of the day’s early session low.  A similar restrained day in volume terms for New York, this market shed the midsession gains in the afternoon to slip back to near unchanged on the close.  The coffee markets set the close yesterday, following a mixed, mostly positive day, as follows:

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

SEP    1301 + 12                                                    
NOV   1316 + 12                                                   DEC      99.00 + 0.60
JAN    1339 + 11                                                   MAR   102.50 + 0.60
MAR   1362 +  9                                                    MAY   104.80 + 0.60
MAY   1386 +  8                                                    JUL    106.90 + 0.55
JUL    1411 +  8                                                    SEP    108.85 + 0.55
SEP    1437 +  8                                                    DEC   111.75 + 0.55
NOV   1463 +  7                                                    MAR   114.65 + 0.55
JAN    1490 +  7                                                    MAY   116.60 + 0.55
MAR   1514 +  7                                                    JUL    118.45 + 0.55