Coffee Market Report December 20 2019

The Ugandan Coffee Development Authority UCDA have reported that their country’s coffee exports for the month of November were 28,875 bags or 7.04% higher than the same month last year, at a total of 438,815 bags. This has contributed to the country’s cumulative coffee exports for the first two months of the present October 2019 to September 2020 coffee year to have been 62,401 bags or 8.27% higher than the same period in the previous coffee year, at a total of 817,053 bags. 

The March to March contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 65.19 usc/Lb.  This equates to 51.25% 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 3,667 bags yesterday; to register these stocks at 2,024,250 bags, with 88.5% of these certified stocks being held in Europe at a total 1,791,456 bags and the remaining 11.5% being held in USA certified warehouses, at a total 232,794 bags.  There was meanwhile a 2,565 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 24,833 bags. 

The commodity markets were mixed in trade yesterday, to see the overall macro commodity index taking a sideways track for the day. The Oil, Natural Gas, Sugar, Cotton, Copper, Orange Juice, Gold and Silver markets ended the day on a positive note, while the Cocoa, Coffee, Wheat, Corn and Soybean markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.0682% lower; to see this index registered at 415.9703.  The day starts with the U.S. Dollar steady, trading at 1.302 to Sterling, at 1.111 to the Euro and with the US Dollar buying 4.070 Brazilian Real. 

The London and New York markets started the day yesterday trading on a modest positive note. Both markets maintained this positive track into the early afternoon trade. As the afternoon progressed both The London and the New York markets started to attract selling pressure to move into modest negative territory. Both markets continued on this soft track for most of the afternoon trade. The London market maintained these low levels to close near to the lows for the day, while the New York market hit a price floor and bounced back marginally to limit the losses for the day. 

The London market ended the day on a negative note, and with 91.3% of the earlier losses of the day intact, while the New York market ended the day on a likewise negative note, and with 85.7.% of the earlier losses of the day intact. This soft and lacklustre close does little to inspire confidence and might expect little better than a near to steady start due for early trade today, against the prices set yesterday, as follows:   

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

JAN    1339 – 45                                                           MAR   127.20 – 6.00

MAR   1367 – 42                                                           MAY   129.40 – 6.00

MAY   1385 – 41                                                           JUL    131.40 – 5.90

JUL    1404 – 40                                                           SEP    133.15 – 5.80

SEP    1423 – 40                                                           DEC   135.20 – 5.75

NOV   1442 – 40                                                           MAR   137.20 – 5.65

JAN    1461 – 40                                                           MAY   138.25 – 5.65

MAR   1485 – 40                                                           JUL    139.25 – 5.65

MAY   1508 – 40                                                           SEP    140.25 – 5.60