Coffee Market Report May 01 2020

Today is the Labour Day public holiday in 106 countries and including most of the major European consumer countries and along with, most of the main of the coffee producer countries.   Including Brazil, Vietnam, Colombia, the Central American countries, Indonesia, India, the African coffee producers and while this does not include the U.S.A. and Great Britain and the coffee terminal markets shall remain active, it is unlikely though, that there shall be much excitement for these markets today.     

The July to July contracts arbitrage between the London and New York markets narrowed yesterday; to register this at 52.11 usc/Lb.  This equates to 49.02% 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 26,626 bags yesterday; to register these stocks at 1,820,363 bags, with 90.6% of these certified stocks being held in Europe at a total of 1,648,427 bags and the remaining 9.4% being held in the USA at a total of 171,936 bags.  There was meanwhile a smaller in number 23,015 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 25,515 bags. 

The commodity markets were firmer in trade yesterday, to see the overall macro commodity index taking a positive track for the day. The Sugar, Cocoa and Coffee markets ended the day on a positive note.  The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 2.0159% higher; to see this index registered at 337.4155.   The day starts with the U.S. Dollar steady, trading at 1.256 to Sterling, at 1.096 to the Euro and with the US Dollar buying 5.486 Brazilian Real.     

The London and New York markets started the day yesterday trading around par on a modest positive note, both markets attracted selling pressure to move onto a negative track for the early afternoon trade. As the afternoon progressed the London market gained momentum to move into positive territory for the afternoon where the market closed, while the New York market continued to trend softer until late in the afternoon when the market gained buying support to trend positive towards the close for the day. 

The London market ended the day on a modest positive note and with 61.54% of the earlier gains of the day intact, while the New York market ended the day on a likewise positive note and with 40.81% of the earlier gains of the day intact. This firmer close, with both markets rebounding late in the afternoon session to close positive for the day, might inspire some degree of confidence to possibly set the markets for a steady start to early trade today, against the prices set yesterday, as follows:   

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

JUL    1194 + 8                                                                   JUL    106.30 + 1.00

SEP    1215 + 7                                                                    SEP   107.50 + 0.90

NOV   1235 + 8                                                                    DEC   109.35 + 0.95

JAN    1253 + 8                                                                    MAR  111.30 + 1.00 

MAR   1270 + 7                                                                    MAY  112.55 + 1.15 

MAY   1288 + 8                                                  JUL   113.75 + 1.20

JUL     1306 + 8                                                                    SEP    114.95 + 1.25

SEP    1326 + 7                                                  DEC  116.55 + 1.30