Coffee Market Report

by | 01 Apr 2021

The Ivory Coast as west Africa’s leading robusta coffee producer, have reported that their coffee exports for the month of February were 74,017 bags or 62.95% lower than the same month in the previous year, at a total of 43,550 bags.  This has contributed to their country’s cumulative coffee exports for the first five months of the October 2020 to September 2021 coffee year to be 511,708 bags or 61.56% lower than the same period in the previous year, at a total of 319,484 bags. 

Due to religious holidays being observed for the majority of the mainstream consumer markets, the London market shall be closed tomorrow and again on Monday, while the New York market shall be closed tomorrow and to trade solo and for a shortened trading day on Monday. 

The May-to-May contract arbitrage between the London and New York markets broadened yesterday: to register this at 62.63 usc/Lb. This equates to 50.71% price discount for the London Robusta coffee market.  

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increased by 11,231 bags yesterday, to register these stocks at 1,834,116 bags, with 95.4% of these certified stocks being held in Europe at a total of 1,749,653 bags and the remaining 4.6% being held in the USA at a total 84,463 bags.  There was meanwhile a smaller in number 6,665 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 40,886 bags.

It was a firmer day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a positive track for the day. The Cocoa, New York Arabica Coffee Market, Gold, Silver, Platinum and Palladium markets ended the day on a positive note, while the Sugar and London Robusta Coffee Markets ended the day on a softer note. The day starts with the U.S. Dollar, trading at 1.378 Sterling, at 1.172 the Euro and with the US Dollar buying 5.632 Real.   

The New York and London markets started the day yesterday trading on a modest positive note, the New York market continued to oscillate around par for the remainder of the morning session, while the London market dropped back and was seen to be set on a softer track for the morning session. As the afternoon progressed the New York and London markets dropped back to hit a floor limiting the losses for the day. Late in the afternoon session saw the New York and London markets recover to a degree. The New York market recovered most of the losses of the day to settle on a firmer note, while the London market settled on a softer note for the day.

The London market ended the day on a negative note with 35.30% of the earlier losses of the day intact, while the New York market ended the day on a positive note with 41.86% of the earlier gains of the day intact. This mixed close does little to indicate direction and one might think the markets are due for little better than hesitant steady start to early trade today, against the prices set yesterday, as follows:  

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

MAY     1342 – 6                                     MAY     123.50 + 0.90

JUL      1366 – 7                                     JUL     125.40 + 0.75

SEP     1386 – 8                                     SEP     127.30 + 0.70

NOV     1402 – 8                                     DEC     129.65 + 0.65

JAN     1417 – 8                                     MAR    131.70 + 0.65

MAR    1433 – 8                                     MAY    132.75 + 0.70

MAY     1450 – 8                                     JUL        133.45 + 0.75

JUL      1467 – 8                                      SEP     133.90 + 0.85