Coffee Market Report March 09 2020

The latest Commitment of Traders report from the New York arabica market has seen the Non-Commercial Speculative sector of this decrease their net short sold position within the market by 80.1% over the week of trade leading up to Tuesday 3rd. March; to register a new net short position of 3,229 Lots which is the equivalent of 915,407 bags.  This position has most likely been further decreased, following the period of mixed but overall sideways trade that has since followed. 

The latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector of this market increase their net short sold position within the market by 6.3% over the week of trade leading up to Tuesday 3rd. March; to register a short-sold position of 43,475 Lots.  This net short sold position is the equivalent of 7,245,833 bags and has most likely been further increased, following the period of mixed though overall sideways trade that has since followed. 

The May to May contracts arbitrage between the London and New York markets narrowed on Friday; to register this at 50.93 usc/Lb.  This equates to 47.42% 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 169 bags on Friday; to register these stocks at 2,112,572 bags, with 89.8% of these certified stocks being held in Europe at a total of 1,896,355 bags and the remaining 10.2% being held in the USA at a total of 216,217 bags.  There was meanwhile no change to the number of bags pending grading for this exchange; to register these pending grading stocks at 0 bags. 

The commodity markets were softer in trade on Friday, to see overall macro commodity index taking a soft sideways track for the day. The Cocoa, Coffee and Sugar markets ended the day on a softer note.  The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 1.8290% lower; to see this index registered at 379.2813.   The day starts with the U.S. Dollar steady, trading at 1.305 to Sterling, at 1.139 to the Euro and with the US Dollar buying 4.627 Brazilian Real. 

The London and New York markets started the day on Friday trading on a negative note, both markets continued on this soft track into the early afternoon trade. As the afternoon progressed the New York market on the back of a weaker Brazil Real started to attract selling pressure to move deeper into negative territory to close on a very negative note, while the London market followed suit in a more sedate manner to also close on a very negative note for the day. 

The London market ended the day on a very negative note and with 49.15% of the earlier losses of the day intact, while the New York market ended the day on a likewise very negative note and with 75.96% of the earlier losses of the day intact.  This soft and lacklustre close does little to inspire confidence and with a weaker  Brazil Real in play, one might expect the markets are due for little better than a hesitant steady start for early trade today, against the prices set on Friday, as follows:   

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

MAY   1245 – 29                                                                         MAY  107.40 – 3.95

JUL    1264 – 28                                                                         JUL    109.30 – 4.00

SEP    1283 – 26                                                                         SEP   111.25 – 4.00

NOV   1302 – 24                                                                         DEC   113.75 – 3.80

JAN    1320 – 23                                                                         MAR  116.00 – 3.75

MAR   1335 – 23                                                                         MAY  117.20 – 3.75

MAY   1354 – 23                                                                         JUL    118.20 – 3.80

JUL    1374 – 22                                                                         SEP    119.20 – 3.80