Coffee Market Report February 20 2020

18th. February 2020.
The London robusta market traded solo yesterday with New York closed for the day as the U.S.A. observed a national Presidents’ Day holiday.

The March to March contracts arbitrage between the London and New York markets held steady yesterday; to register this at 51.74 usc/Lb. This equates to 46.47% price discount for the London Robusta coffee market.

The Certified washed Arabica coffee stocks held against the New York exchange were unchanged at the last report due to the USA holiday, at 14th February, were seen to increase by 1,832 bags on Friday; to register these stocks at 2,163,109 bags, with 89.59% of these certified stocks being held in Europe at a total of 1,937,833 bags and the remaining 10.41% being held in the USA at a total of 225,276 bags. The greatest percentage of these certified coffees hail from Honduras, at a respectable 71.32% of total Certified Stocks being held in both European and American Certified warehouses. There was meanwhile a decrease by 4,547 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 5,546 bags on Friday 14th February.

The commodity markets lacking their New York counterparts, were mixed in trade yesterday; the leading in influence Oil markets, finishing in positive territory on the day. Other commodities in positive territory included Copper, Silver, Platinum and Palladium markets, while a relatively unchanged day for robusta Coffee, and a softer day for Gold, Sugar, Cocoa, Cotton as well as the Grains sector, modestly lower on the day. The Refinitiv Equal Weight Continuous Commodity Index that is related to 17 markets stood at 0.1586% higher on Friday 14th February; to see this index registered at 402.9165. The day starts with the U.S. Dollar steady, trading at 1.299 to Sterling, at 1.083 to the Euro and with the US Dollar buying 4.32 Brazilian Real.

The London market opened the day on a buoyant note, the strong finish in New York on Friday assisting to a degree in the early morning session. The volumes in London across the day would be considered relatively modest overall and the market slipped below par as the upward momentum petered out. The rest of the day settled in a narrow and somewhat muted range around par until the close on day, around unchanged. The London robusta market trading alone for the day without the participation of the New York arabica counterpart, set the close after a modest volume day around unchanged, as follows:

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

Close 17th February, 2020        Close 14th February, 2020

MAR  1290 + 3                         MAR 109.10 + 4.65
MAY  1314 Unch                      MAY 111.35 + 4.65
JUL   1329 – 4                          JUL 113.40 + 4.65
SEP  1344 – 2                          SEP 115.45 + 4.70
NOV 1360 – 2                           DEC 118.10 + 4.70
JAN   1376 – 3                         MAR 120.65 + 4.70
MAR 1391 – 4                          MAY 121.95 + 4.60
MAY  1409 – 4                         JUL 123.15 + 4.55
JUL   1429 – 4                          SEP 124.30 + 4.55