Coffee Market Report

by | 16 Nov 2020

The latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector of this market decrease their net short position by 28.62% within the market over the week of trade leading up to Tuesday 10th. November; to register a new net short position of 4,055 Lots which is the equivalent of 675,833 bags.  This net short position has most likely been further decreased following the period of mixed but overall firmer trade that has since followed.

The December 2020 to January 2021 contract arbitrage between the New York and London markets narrowed on Friday: to register this at 45.30 usc/Lb.  This equates to 41.46% price discount for the London Robusta coffee market.  

The Certified washed Arabica coffee stocks held against the New York exchange was seen to increase by 4,926 bags on Friday, to register these stocks at 1,197,512 bags, with 93.6% of these certified stocks being held in Europe at a total of 1,120,510 bags and the remaining 6.4% being held in the USA at a total 77,002 bags.  There was meanwhile a smaller in number 649 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 71,450 bags.  

It was a neutral day overall on the commodity markets on Friday, to see the overall macro commodity index taking something of a sideways track for the day. The Sugar and Cocoa markets ended the day on a positive note, while the Coffee markets ended the day on a softer note.  The Reuters Equal Weight Continuous Commodity Index that is related to 17 markets is 0.0438% lower; to see this index registered 422.6754.  The day starts with the U.S. Dollar, trading at 1.320 Sterling, at 1.190 the Euro and with the US Dollar buying 5.460 Real.

The New York and London markets started the day on Friday trading to a modestly positive side of par and with both markets soon coming under a degree of selling pressure to see the markets drop back off the highs of the morning session. As the afternoon progressed the markets gained momentum once again but this was short lived as both markets soon dropped back off the highs of the day to settle on a modest soft note. 

Due to the absence of the writers, the market reports for the week will be brief, out of temporary necessity.

The London market ended the day on a modest softer note with 42.85% of the earlier losses of the day intact. while the New York market ended the day on a likewise modest softer note with 56.67% of the earlier losses of the day intact. This soft close does little to inspire confidence and on might think the markets are due for little better than a hesitant steady start to early trade today, against the prices set on Friday, as follows:  

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

JAN   1410 – 3                                                        DEC   109.25 – 0.85

MAR   1419 – 2                                                                 MAR   112.20 – 0.75

MAY   1429 – 2                                                                   MAY   114.10 – 0.70

JUL    1443 – 3                                                                  JUL     115.75 – 0.70

SEP    1460 – 2                                                                   SEP     117.30 – 0.70

NOV   1477 – 2                                                                   DEC    119.20 – 0.80

JAN    1493 – 2                                                                  MAR   120.90 – 0.80

MAR   1509 – 2                                                                     MAY     121.80 – 0.85