Coffee Market Report

by | 16 Feb 2021

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 this market by 11.20% over the week of trade leading up to Tuesday 9th. February; to register a new net long position of 22,804 lots. Meanwhile the longer term in nature Index Fund sector of this market raised their net long position within the market by 2.76%, to register a net long position of 74,837 Lots on the day.

Over the same week, the Non-Commercial Speculative sector of this market cut their net long position within the market by 13.47% to register a new net long position of 19,752 Lots which is the equivalent of 5,559,604 bags. This net long position has most likely been decreased, following the period of marginal firmer trade that has since followed.   

The March 2021 to March 2021 contract arbitrage between the London and New York markets widened yesterday: to register this at 60.73 usc/Lb. This equates to 50.13% price discount for the London Robusta coffee market.  

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 5,120 bags yesterday, to register these stocks at 1,720,253 bags, with 94.9% of these certified stocks being held in Europe at a total of 1,631,592 bags and the remaining 5.1% being held in the USA at a total 88,661 bags.  There was meanwhile a larger in number 8,842 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 78,019 bags.

Many commodity markets were closed yesterday, for the Presidents Day Holiday in the U.S.A., but with most of the few that were trading ending the day on a softer note. This including the London Robusta Coffee Market. The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.55% higher on Friday; to see this index registered 488.63.  The day starts with the U.S. Dollar steady, trading at 1.394 Sterling, at 1.214 the Euro and with the US Dollar buying 5.370 Real.

The London market trading solo yesterday started the day trading close to par and holding this near to steady stance into the early afternoon trade when some degree of pressure started to impact and to force the market into a modest negative territory. The market did though manage to bounce back from the lows late in the day however this support was short lived, and the market soon was seen to close on a modest soft note for the day.

The London market ended the day on a modest negative note with 83.33% of the earlier losses of the day intact, while the New York market ended the day on Friday on a modest close to par negative note with 5.26% of the earlier losses of the day intact. The New York market was closed yesterday for the U.S.A. Presidents Day holiday. This to possibly set both markets for only a near to steady start for early trade today, against the prices set in New York on Friday and in London yesterday, as follows:  

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

MAR    1332 – 10                                   MAR    121.15 – 0.05

MAY     1356 – 11                                   MAY     123.05  Unch

JUL      1370 – 10                                   JUL     125.00 + 0.05

SEP     1385 – 10                                   SEP     126.80 + 0.05

NOV     1401 – 10                                   DEC     128.90 + 0.05

JAN     1416 – 10                                   MAR    130.60 + 0.05

MAR    1433 – 11                                    MAY    131.40 + 0.05

MAY     1450 – 11                                   JUL        132.05 + 0.15