Coffee Market Report September 26 2019

The November to December contracts arbitrage between the London and New York markets widened yesterday; to register this at 41.57 usc/Lb.  This equates to 41.18% 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 15,653 bags yesterday; to register these stocks at 2,296,252 bags.  There was an increase in the number of bags pending grade to this exchange, by 13,287 bags; to register these pending grading stocks at 30,414 bags. 

It was a mixed day on the commodity markets yesterday, to see overall macro commodity index taking a softer track for the day. The Sugar, Cocoa, New York Arabica Coffee, Cotton and Copper markets ended the day on a positive note, while the Oil, Natural Gas, Orange Juice, Wheat, Corn, 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 0.197% lower; to see this index registered at 395.55.   The day starts with the U.S. Dollar near to steady and trading at 1.237 to Sterling, at 1.096 to the Euro and with the US Dollar buying 4.148 Brazilian Real. 

The London market started the day trading marginally south of par, with the New York market opening slightly softer for the day. Both markets maintained this soft stance into the early afternoon trade. As the afternoon progressed the New York market started to attract selling pressure and dipped deeper into negative territory, only to gain a degree of late in the day support and to bounce back from the lows and end the day on a positive note, while the London market retained this soft stance for the rest of the day, but with the ability to bounce back from the lows of the day, to end the day on a modest soft note. 

The London market ended the day on a soft note and with 50% of the earlier losses of the day intact, while the New York market ended the day on a positive note and with 75% of the earlier gains of the day intact. This close and with the Brazil Real marginally firmer it might assist towards some degree of caution and set the markets for a steady start for early trade today, against the prices set yesterday, as follows:  

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

NOV   1309 – 8                                                     DEC    100.95 + 1.80

JAN    1331 – 4                                                     MAR   104.45 + 1.85

MAR   1357 – 2                                                     MAY   106.70 + 1.80

MAY   1383 + 1                                                     JUL    108.80 + 1.80

JUL    1409 + 2                                                     SEP    110.70 + 1.75

SEP    1435 + 2                                                     DEC   113.60 + 1.80

NOV   1461 + 2                                                     MAR   116.45 + 1.75

JAN    1488 + 2                                                     MAY   118.35 + 1.75

MAR   1512 + 2                                                     JUL    120.20 + 1.75