Coffee Market Report March 20 2020

The May to May contracts arbitrage between the London and New York markets broadened yesterday; to register this at 57.54 usc/Lb.  This equates to 51.06% 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 6,346 bags yesterday; to register these stocks at 2,075,942 bags, with 90.4% of these certified stocks being held in Europe at a total of 1,877,521 bags and the remaining 9.6% being held in the USA at a total of 198,421 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 firmer in trade yesterday, to see overall macro commodity index taking a sideways track for the day. The New York Arabica Coffee market ended the day on a positive note, while the Sugar and London Robusta Coffee markets ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 3.0307% higher; to see this index registered at 327.0938.   The day starts with the U.S. Dollar steady, trading at 1.1658 to Sterling, at 1.0761 to the Euro and with the US Dollar buying 5.0957 Brazilian Real. 

The London and New York markets started the day yesterday trading on a modest soft close to par note, both markets continued on this softer track into the early afternoon trade. As the afternoon progressed both the London and the New York markets started to attract buying support to move deep into positive territory only to hit a ceiling a drop back to see the New York market close on a positive note and the London market close on a modest negative note for the day. 

The London market ended the day on a modest negative note and with 50% of the earlier losses of the day intact, while the New York market ended the day on a positive note and with 79.3% of the earlier gains of the day intact.  This mixed close might inspire some degree of confidence to possibly set the markets for a hesitant steady start to early trade today, against the prices set yesterday, as follows: 

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

MAY   1216 – 11                                                                         MAY  112.70 + 4.40

JUL    1244 – 1                                                                           JUL    113.45 + 5.30

SEP    1267 + 3                                                                          SEP    114.45 + 5.75

NOV   1287 + 9                                                                           DEC   115.70 + 5.75

JAN    1304 + 12                                                                         MAR  117.35 + 5.75

MAR   1318 + 12                                                                         MAY  118.45 + 5.85

MAY   1333 + 9                                                                           JUL    119.35 + 5.90

JUL    1353 + 8                                                                           SEP    120.05 + 5.80