Coffee Market Report

by | 08 Oct 2020

The National Coffee Institute of Costa Rica (ICAFE) have reported that the country’s coffee exports for the month of September were 132.18% higher than the same month last year, at a total of 56,448 bags. This they say has contributed to the cumulative coffee exports for the October 2019 to September 2020 coffee year to be 6.7% higher than the same period in the previous coffee year, at a total of 1,135,522 bags. 

The National Coffee Institute of Costa Rica (ICAFE) has reported that during the October 2020 to September 2021 coffee year exports could potentially climb by around 8.2% to 1.6 million bags, this in comparison to the 1.14 million bags that were exported through the October 2019 to September 2020 export season. 

The November to December contract arbitrage between the London and New York markets broadened yesterday; to register this at 53.08 usc/Lb.  This equates to 48.43% price discount for the London Robusta coffee market.     

The Certified washed Arabica coffee stocks held against the New York exchange were seen decrease by 1,439 bags yesterday to register these stocks at 1,096,559 bags, with 93.80% of these certified stocks being held in Europe at a total of 1,028,361 bags and the remaining 6.20% being held in the USA at a total of  68,198 bags.  There was meanwhile a larger in number 15,225 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 38,859 bags.  

The Certified Robusta coffee stocks held against the London exchange have been reported to decrease by 14,333 bags over the weeks of trade leading up to Monday 5th. October, to see these stocks registered at 1,808,000 bags, on the day.

It was a relatively firmer day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a positive sideways track for the day. The Sugar, Cocoa and New York Arabica 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 0.4377% higher; to see this index registered at 415.8603.   The day starts with the U.S. Dollar steady, trading at 1.294 Sterling, at 1.177 the Euro and with the US Dollar buying 5.612 Brazilian Real.

The New York market started the day yesterday trading on a modest positive note, while the London market started the day yesterday trading on a modest soft note. Both markets under a degree of selling pressure trended softer for the morning session. As the afternoon progressed the New York market bounced off the lows of the day and buoyed by buying support in the market was set on a positive path for the afternoon, the London market however continued to trade on a softer note for the day. Late in the day saw the New York market jump up significantly before reconciling to settle on a positive note for the day, while the London market settled on a modest soft note for the day.

The London market ended the day with on a negative note with 39.13% of the earlier losses of the day intact, while the New York market ended the day on a positive note with 58.21% of the earlier gains of the day intact. This close, 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.                                                

NOV   1246 – 9                                                                         DEC    109.60 + 1.95 

JAN    1266 – 13                                                                      MAR   111.80 + 1.95 

MAR   1281 – 14                                                                      MAY   113.40 + 1.95

MAY   1299 – 14                                                                      JUL     114.95 + 1.95

JUL     1316 – 14                                                                     SEP     116.25 + 1.95 

SEP    1334 – 13                                                                     DEC    117.90 + 2.05

NOV   1352 – 11                                                                      MAR   119.55 + 2.15

JAN    1369 – 13                                                                       MAY   120.75 + 2.20