Coffee Market Report March 26 2020
The May to May contracts arbitrage between the London and New York markets broadened yesterday; to register this at 72.84 usc/Lb. This equates to 56.05% 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 2,952 bags yesterday; to register these stocks at 2,027,908 bags, with 90.4% of these certified stocks being held in Europe at a total of 1,832,795 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 Certified Robusta coffee stocks held against the London exchange have been reported to decrease by 17,667 bags over the weeks of trade leading up to Monday 23rd. March, to see these stocks registered at 2,411,333 bags, on the day.
The commodity markets were firmer in trade yesterday, to see overall macro commodity index taking a sideways track for the day. The Coffee and Sugar markets ended the day on a positive note, while the Cocoa market ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 1.3694% higher; to see this index registered at 351.7506. The day starts with the U.S. Dollar steady, trading at 1.186 to Sterling, at 1.092 to the Euro and with the US Dollar buying 5.035 Brazilian Real.
The London market started the day yesterday trading on a positive note, while the New York market started the day yesterday trading on a modest soft note, both markets maintained their respective stance into the early afternoon trade. As the afternoon progressed the dropped back from the highs of the day to close on a modest positive note, while the New York market started to attract buying support to move deeper into positive territory for the day and close on a positive note.
The London market ended the day on a modest positive note and with 20% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note and with 90.6% 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 1259 + 2 MAY 129.95 + 4.35
JUL 1297 + 4 JUL 128.95 + 3.55
SEP 1317 + 5 SEP 128.95 + 3.50
NOV 1332 + 4 DEC 129.20 + 3.60
JAN 1344 + 2 MAR 129.95 + 3.55
MAR 1355 Unch MAY 130.85 + 3.55
MAY 1370 – 1 JUL 131.65 + 3.50
JUL 1391 – 1 SEP 132.50 + 3.50