Coffee Market Report February 02 2017
West Africa’s leading robusta coffee producer, Ivory Coast have reported that the countries coffee exports for the month of December were 25.68% lower than that of the same month in the previous year and registered the months’ coffee exports at 72,933 bags. The cumulative calendar year total for exports of mainly robusta coffees over the twelve month period from Ivory Coast, are reported at 18.28% or 191,717 bags higher than that of the same time in the previous year to December, to register exports at a total 1,243,483 bags in 2016.
The May to May contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 50.58 usc/Lb., while this equates to 33.27% price discount for the London robusta coffee market. This relatively narrow arbitrage is now becoming less of an attractive factor for the roasters who have considered robusta coffees to be an opportunist discount component, within their mostly arabica coffee blends.
The London and New York markets started the day on a mildly softer note in both markets, with the slide in the US Dollar value assisting to boost the markets into positive territory during the early session, although briefly in New York and London, in a narrow range incrementally positive in limited morning volume of trade. As the day gained momentum and the American markets opened their day to lend an influence to direction, the news of conducive weather in the Brazil coffee areas weighed in on sentiment to see the latter half of the day move lower. The trend in New York remained negative, with only limited underlying buyers present provide resistance and meet the volume of seller activity as the speculator sector of the market took precedence and cover, the New York market pressured lower by the latter half of the session. The less active London market followed suit to see both markets in negative territory as the day drew to a close. The low touched in New York appeared to attract fresh buying activity to the floor and both markets recovered a degree of the afternoon losses incurred toward the end of the day. New York regained 1.97% from the low and London a recovery of 1.26% from the low on the day, to set the close in both markets yesterday, in negative territory but with a degree of late in the day buoyancy, as follows;
MAR 2222 – 15 MAR 149.55 – 1.60
MAY 2236 – 14 MAY 152.00 – 1.70
JUL 2244 – 13 JUL 154.35 – 1.70
SEP 2249 – 12 SEP 156.55 – 1.75
NOV 2249 – 14 DEC 159.60 – 1.80
JAN 2248 – 14 MAR 162.45 – 1.85
MAR 2247 – 13 MAY 164.15 – 1.80
MAY 2249 – 13 JUL 165.70 – 1.80
JUL 2259 – 13 SEP 167.15 – 1.75