Coffee Market Report December 30 2019

The General Statistics Office in Vietnam have estimated that the countries coffee exports for the month of December shall be approximately 2.5 million bags which they say shall contribute to the countries cumulative exports for the 2019 calendar year to be 13.9% lower than the same period last year, at a total of 26.83 million bags.   

The General Statistics Office in Vietnam have also estimated that the countries coffee export revenue for the month of December shall be approximately $258 million which they say shall contribute to the countries cumulative export revenue for the 2019 calendar year to be 21.2% lower than the same period last year, at a total of $2.785 billion, This number well illustrating the negative effects of the prevailing soft coffee terminal markets.

The March to March contracts arbitrage between the London and New York markets broadened on Friday; to register this at 69.59 usc/Lb.  This equates to 52.52% 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 945 bags on Friday; to register these stocks at 2,031,274 bags, with 88.5% of these certified stocks being held in Europe at a total of 1,798,480 bags and the remaining 11.5% being held in the USA at a total of 232,794 bags.  There was meanwhile a larger in number decrease by 4,172 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 6,693 bags.

The commodity markets were mixed in trade on Friday, to see overall macro commodity index taking a sideways track for the day. The Oil, Sugar, Cocoa, Coffee, Cotton, Orange Juice, Wheat, Corn and Gold markets ended the day on a positive note, while the Natural Gas, Copper, Soybean and Silver markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.3905% higher; to see this index registered at 420.5419.   The day starts with the U.S. Dollar showing some degree of buoyancy and steady, trading at 1.312 to Sterling, at 1.120 to the Euro and with the US Dollar buying 4.045 Brazilian Real. 

The London and New York markets started the day on Friday trading in positive territory, both markets maintained this positive stance into the early afternoon trade. As the afternoon progressed the London and New York markets started to attract buying support to move further into positive territory and accentuate the gains for the day, both markets maintained this upward trend to close near to the highs of the day. 

The London market ended the day on a positive note, and with 61.6% of the earlier gains of the day intact, while the New York market ended the day on likewise positive note, and with 94.5% of the earlier gains of the day intact. This positive close might assist towards some degree of confidence and to set the markets for near to steady hesitant start for early trade today, against the prices set on Friday, as follows:   

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

JAN    1359 + 34                                                             MAR   132.50 + 5.20

MAR   1387 + 37                                                             MAY   134.65 + 5.15

MAY   1404 + 36                                                             JUL    136.75 + 5.20

JUL    1423 + 35                                                             SEP    138.55 + 5.25

SEP    1441 + 35                                                             DEC   140.55 + 5.25

NOV   1459 + 34                                                             MAR   142.55 + 5.25

JAN    1476 + 34                                                             MAY   143.55 + 5.30

MAR   1499 + 33                                                             JUL    144.45 + 5.25

MAY   1521 + 32                                                             SEP    145.40 + 5.25