Coffee Market Report February 07 2020

The March to March contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 40.04 usc/Lb.  This equates to 40.80 % 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 310 bags yesterday; to register these stocks at 2,166,185 bags, with 89.4% of these certified stocks being held in Europe at a total of 1,935,633 bags and the remaining 10.6% being held in the USA at a total of 230,552 bags.  There was meanwhile no change to the number of bags pending grading for this exchange; to register these pending grading stocks at 21,265 bags. 

The commodity markets were mixed in trade yesterday, to see overall macro commodity index taking a firm sideways track for the day. The Natural Gas, Sugar, Cocoa, Coffee, Cotton, Copper, Orange Juice, Soybean, Gold and Silver markets ended the day on a positive note, while the Oil and Corn markets ended the day on a softer note.    The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.4913% higher; to see this index registered at 399.2736   The day starts with the U.S. Dollar showing some degree of buoyancy and steady, trading at 1.294 to Sterling, at 1.098 to the Euro and with the US Dollar buying 4.282 Brazilian Real. 

The London and New York markets started the day yesterday trading on close to par on a modest positive note, both markets encountered buying support to move deeper into positive territory into the early afternoon trade. As the afternoon progressed both the London and the New York started to attract selling pressure to drop back of the highs of the day’s trade and move into modest positive territory, both markets maintained this modest positive track for the remainder of the day’s trade. 

The London market ended the day on a modest positive note and with 85% of the earlier gains of the day intact, while the New York market ended the day on a likewise modest positive note and with 25% of the earlier gains of the day intact.  This modest positive close might assist towards some degree of confidence and to set the markets on track for a steady start to early trade today, against the prices set yesterday, as follows:  

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

MAR   1281 + 17                                                                      MAR     98.15 + 0.40

MAY   1297 + 13                                                                      MAY    100.35 + 0.50

JUL    1316 + 11                                                                      JUL     102.55 + 0.45

SEP    1336 + 10                                                                      SEP    104.70 + 0.50

NOV   1356 + 10                                                                       DEC   107.50 + 0.45

JAN    1375 + 11                                                                       MAR  110.35 + 0.45

MAR   1395 + 11                                                                       MAY  111.90 + 0.40

MAY   1416 + 11                                                                       JUL    113.30 + 0.45

JUL    1439 + 11                                                                       SEP    114.50 + 0.45