Coffee Market Report March 24 2020

The latest Commitment of Traders report from the New York arabica coffee market has seen the shorter term in nature Managed Money fund sector of this market decrease their net long position within the market over the week of trade leading up to Tuesday 17th.March; to register a new net long position of 2,647 Lots.  Meanwhile the longer term in nature Index Fund sector of this market decreased their net long position within the market by 8.67%, to register a net long position of 46,573 Lots on the day. 

Over the same week, the Non-Commercial Speculative sector of this market increased their net short sold position within the market by 133%; to register a new net short position of 3,820 Lots which is the equivalent of 1,082,953 bags.  This position has most likely been increased, following the period of positive trade that has since followed. 

The May to May contracts arbitrage between the London and New York markets broadened yesterday; to register this at 64.82 usc/Lb.  This equates to 53.46% 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 18,975 bags yesterday; to register these stocks at 2,038,903 bags, with 90.4% of these certified stocks being held in Europe at a total of 1,843,790 bags and the remaining 9.6% being held in the USA at a total of 195,113 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 Cocoa, Coffee and Sugar markets ended the day on a positive note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 2.2187% higher; to see this index registered at 335.1300.   The day starts with the U.S. Dollar steady, trading at 1.161 to Sterling, at 1.078 to the Euro and with the US Dollar buying 5.143 Brazilian Real. 

The London and New York markets started the day yesterday trading on a modest negative note, both markets continued on this soft track into the early afternoon trade. As the afternoon progressed the London and New York markets started to attract buying support to move into positive territory, the London market dropped back after hitting a ceiling to close unchanged for the day while the New York market closed on a positive note for the day. 

The London market remained unchanged on the day, while the New York market ended the day on a positive note and with 29.8% of the earlier gains of the day intact.  This positive 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   1244 Unch                                                                     MAY  121.25 + 1.55

JUL    1272 + 3                                                                         JUL    122.00 + 2.25

SEP    1292 + 3                                                                         SEP   122.45 + 2.35

NOV   1312 + 1                                                                         DEC   123.05 + 2.10

JAN    1330 + 1                                                                         MAR  123.85 + 1.65

MAR   1345 + 1                                                                         MAY  124.90 + 1.65

MAY   1360 Unch                                                                     JUL    125.80 + 1.70

JUL    1380 Unch                                                                     SEP    126.65 + 1.75