Coffee Market Report April 23 2020

The Ivory Coast as west Africa’s leading robusta coffee producer, have reported that their coffee exports for the month of March were 36,050 bags or 25.65% lower than the same month last year, at a total of 104,467 bags.  This has contributed to their country’s cumulative coffee exports for the first three months of 2020 to be 2,467 bags or 0.95% lower than the same period last year, at a total of 255,867 bags. 

The July to July contracts arbitrage between the London and New York markets broadened yesterday; to register this at 60.20 usc/Lb.  This equates to 54.21% 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 13.660 bags yesterday; to register these stocks at 1,864,372 bags, with 90.7% of these certified stocks being held in Europe at a total of 1,690,528 bags and the remaining 9.3% being held in the USA at a total of 173,844 bags.  There was meanwhile no change to the number of bags pending grading for this exchange; to register these pending grading stocks at 21,460 bags. 

The Certified Robusta coffee stocks held against the London exchange have been reported to decrease by 44,000 bags over the weeks of trade leading up to Monday 20th. April, to see these stocks registered at 2,308,167 bags, on the day. 

The commodity markets were firmer in trade yesterday, to see the overall macro commodity index taking a positive track for the day. The Cocoa, Sugar and New York Arabica Coffee Markets ended the day on a positive note, while the London Robusta Coffee market ended the day on a softer note. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 2.924% higher; to see this index registered at 329.9525.   The day starts with the U.S. Dollar steady, trading at 1.236 to Sterling, at 1.083 to the Euro and with the US Dollar buying 5.456 Brazilian Real.     

The New York and London markets started the day yesterday trading around par on a modest positive note, the London market continued on this track into the early afternoon trade while the New York market trended positive. As the afternoon progressed the London market attracted selling pressure to drop into negative territory for the day while the New York market attracted late in the day selling pressure to drop off the highs of the day and settle on a modest positive note. 

The London market ended the day on a negative and with 60% of the earlier losses of the day intact, while the New York market ended the day on a positive note and with 28.95% of the earlier gains of the day intact. This mixed close does little to indicate direction and may think the markets are due 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.                                               

JUL    1121 – 18                                                                  JUL    111.05 +  0.55

SEP    1143 – 17                                                                   SEP   113.00 + 0.30

NOV   1163 – 17                                                                   DEC   114.75 + 0.15

JAN    1184 – 17                                                                   MAR  116.45 + 0.15 

MAR   1203 – 17                                                                   MAY  117.40 + 0.20  

MAY   1220 – 18                                                 JUL   118.35 + 0.25

JUL     1237 – 18                                                                    SEP    119.35 + 0.30

SEP    1257 – 18                                                 DEC  120.90 + 0.30