Coffee Market Report April 14 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 7th. April; to register a new net long position of 19,512 Lots.  Meanwhile the longer term in nature Index Fund sector of this market increased their net long position within the market by 0.7%, to register a net long position of 47,730 Lots on the day. 

Over the same week, the Non-Commercial Speculative sector of this market cut their net long position within this market by 1.6%, to register a new net long position of 8,701 Lots which is the equivalent of 2,466,695 bags This net long position has most likely been little changed following the period of mixed trade though toward the latter half of the week, overall firmer trade that since followed. 

The latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector of this market decrease their net short sold position within the market by 1.08% over the week of trade leading up to Tuesday 7th. April; to register a short-sold position of 30,447 Lots.  This net short sold position is the equivalent of 5,074,500 bags and has most likely been reduced following the period of mixed, sideways trend in trade that has since followed.  

The July to July contracts arbitrage between the London and New York markets broadened yesterday; to register this at 65.30 usc/Lb.  This equates to 54.16% 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 1,888 bags on yesterday; to register these stocks at 1,903.323 bags, with 90.4% of these certified stocks being held in Europe at a total of 1,723,816 bags and the remaining 9.6% being held in the USA at a total of 179,507 bags.  There was meanwhile a larger in number increase by 3,422 bags to the number of bags pending grading for this exchange; to register these pending grading stocks at 26,608 bags.  

The London commodity markets were closed for the day yesterday, to leave the U.S. markets to trade solo for the day.  The Oil markets remained buoyant and the New York arabica coffee market near to steady for the day, while the U.S Sugar and Cocoa markets ended the day on a softer note.  The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.8166% lower; to see this index registered at 340.0650.   The day starts with the U.S. Dollar steady, trading at 1.254 to Sterling, at 1.093 to the Euro and with the US Dollar buying 5.199 Brazilian Real.     

The New York market traded solo yesterday and started the day trading close to par on a modest positive note, the New York market continued on this track into the early afternoon trade. As the afternoon progressed the market attracted selling pressure to drop into negative territory for the day, only to bounce off the lows of the day and close on a modest positive note. 

The London market ended the day on Thursday on a negative and with 78.6% of the earlier losses of the day intact, while the New York market ended the day yesterday on a positive note and with 57.5% of the earlier gains of the day intact. This modest positive close might inspire some degree of confidence as the New York market was able to bounce back off the lows of the day to close on a modest positive note, against the prices set in London on Thursday and in New York yesterday, as follows:   

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

JUL    1219 – 11                                                                    JUL    120.60 + 0.85 

SEP    1232 – 10                                                                    SEP   121.75 + 0.80 

NOV   1248 – 10                                                                    DEC   123.25 + 0.85

JAN    1266 – 9                                                                       MAR  124.45 + 0.85 

MAR   1283 – 7                                                                       MAY  125.35 + 0.90  

MAY  1299 – 6                                                    JUL   126.20 + 0.85

JUL    1317 – 5                                                                       SEP    127.05 + 0.85

SEP   1338 – 3                                                    DEC  128.45 + 0.85