Coffee Market Report December 27 2019

The coffee markets remain devoid of any striking supportive fundamental news, while with the leading Western European consumer bloc on holiday yesterday, there was mostly only thin trade within the North American commodity markets for the day. 

The March to March contracts arbitrage between the London and New York markets broadened yesterday; to register this at 66.06 usc/Lb.  This equates to 51.90% price discount for the London Robusta coffee market.   

The Certified washed Arabica coffee stocks held against the New York exchange were seen to remain unchanged yesterday; to register these stocks at 2,030,329 bags, with 88.5% of these certified stocks being held in Europe at a total 1,797,535 bags and the remaining 11.5% being held in USA certified warehouses, at a total 232,794 bags.  There was meanwhile a larger in number increase by 1,365 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 10,865 bags. 

The commodity markets lacked the participation from the Western Europeans, but with the overall macro commodity index for the USA markets taking an upside track for the day. The Sugar, Platinum and Silver markets ended the day on a positive note, the Gold market remained unchanged for the day, while the Cocoa, Coffee and Palladium markets ended the day on a softer note.  The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.3348% higher; to see this index registered at 418.9061.  The day starts with the U.S. Dollar steady, trading at 1.299 to Sterling, at 1.112 to the Euro and with the US Dollar buying 4.056 Brazilian Real. 

The New York market trading solo yesterday started the shortened day of trade in a hesitant manner and with some early losses, the New York market continued on this soft track for much of the afternoon trade. Setting the market on track for a negative close for the day. 

The New York market ended the day yesterday on a negative note and with 76.4% of the earlier losses of the day intact. This soft turn in the market does little to inspire confidence, with global participation within both markets today, but with many players likely to be on holiday, one might think that trade shall be slow  and possibly some early buoyancy for the London market and a near to steady start for the New York market, for early trade today, against the prices set in London on Tuesday and in New York yesterday, as follows:   

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

JAN    1325 + 29                                                             MAR   127.30 – 2.10

MAR   1350 + 15                                                             MAY   129.50 – 2.05

MAY   1368 + 13                                                             JUL    131.55 – 2.10

JUL    1388 + 14                                                             SEP    133.30 – 2.10

SEP    1406 + 15                                                             DEC   135.30 – 2.10

NOV   1425 + 15                                                             MAR   137.30 – 2.15

JAN    1442 + 14                                                             MAY   138.25 – 2.15

MAR   1466 + 14                                                             JUL    139.20 – 2.20

MAY   1489 + 14                                                             SEP    140.15 – 2.25