Coffee Market Report

by | 20 Nov 2020

The December 2020 to January 2021 contract arbitrage between the New York and London markets widened yesterday: to register this at 57.56 usc/Lb.  This equates to 47.71% 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 7,070 bags yesterday, to register these stocks at 1,229,956 bags, with 93.4% of these certified stocks being held in Europe at a total of 1,149,289 bags and the remaining 6.6% being held in the USA at a total 80,667 bags.  There was meanwhile a smaller in number 6,715 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 49,205 bags.  

It was a softer day overall on the commodity markets yesterday, to see the overall macro commodity index taking something of a sideways track for the day. The Cocoa and New York Coffee markets ended the day on a positive note, while the Sugar and 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 0.6640% lower; to see this index registered 429.6372.  The day starts with the U.S. Dollar, trading at 1.326 Sterling, at 1.187 the Euro and with the US Dollar buying 5.305 Real.

The New York and London markets started the day yesterday trading on a modest positive note, both markets quickly attracted some degree of buying support to see the markets trend positive for the remainder of the morning session. As the afternoon progressed the London market hit a ceiling to drop back limiting the gains for the day, while the New York market also fell back off the highs of the day. This saw the London market trend softer for the remainder of the day, while the New York market buoyed by a degree of buying support settled near to the highs of the day.

 

The London market ended the day on a modest softer note with 78.57% of the earlier losses of the day intact. while the New York market ended the day on a modest positive note with 72% of the earlier gains of the day intact. This mixed close, does little to indicate direction and one might think the markets are possibly set for a follow through hesitant steady start to early trade today, against the prices set yesterday, as follows:  

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

JAN   1391 – 11                                               DEC   120.65 + 0.90

MAR   1403 – 6                                                           MAR   123.20 + 0.35

MAY   1416 – 5                                                          MAY   125.05 + 0.35

JUL    1430 – 5                                                          JUL     126.65 + 0.50

SEP    1446 – 5                                                           SEP     128.00 + 0.50

NOV   1463 – 5                                                            DEC    129.35 + 0.35

JAN    1479 – 5                                                           MAR   130.70 + 0.25

MAR   1595 – 5                                                             MAY     131.45 + 0.15