Over the same week the Non Commercial Speculative sector of this market decreased their net short sold position within the market by 37.57%, to register a net short position of a much reduced 18,673 Lots. This net short sold position which is the equivalent of 5,293,796 bags has most likely been little changed, following the period of mixed trade, which has since followed.

The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative sector of this market decrease their net short sold position within the market by 911 Lots over the week of trade leading up to Tuesday 2nd February; to register a hardly changed net short sold position at 26,298 Lots on the day. This net short sold position that is the equivalent of 4,383,000 bags has most likely been increased, over the period of mixed but overall softer trade, which has since followed.

The May on May contracts arbitrage between the London and New York markets narrowed yesterday, to register this at 53.72 usc/Lb., while this equates to a 45.54% price discount for the London robusta coffee market. This arbitrage remaining relatively attractive to roasters in comparison to arabica coffee prices, with the good discount most likely due to remain in place for the foreseeable future, in line with steady robusta shipments out of Vietnam.

The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 941 bags yesterday; to register these stocks at 1,589,718 bags. There was meanwhile a larger in volume 6,910 bags decrease to the number of bags pending grading for this exchange; to register these pending grading stocks at 18,301 bags.

It was a mixed and overall softer day for the commodity markets yesterday and a majority of the Asian markets closed for the week for New Year celebrations. The leading in influence Oil markets slid lower as the day progressed, with the news that the U.S.A., crude stock piles had reached new record highs. It was a softer day for the Oil markets, although a better day for Gasoline, similarly a softer day for Coffee, Cotton, Copper, Orange Juice and Wheat markets, as well as Soybean and Corn. It was however a much firmer day for the traditional safe haven, Gold, which surged to higher levels last seen in June last year, as was it a stronger day for Silver, Platinum and Palladium, as well as a firmer day for Sugar and Cocoa markets. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.089% lower to see this Index registered at 369.13. The day starts with the U.S. Dollar taking a steady track in early trade and trading at 1.4416 to Sterling and 1.1207 to the Euro, while North Sea Oil is softer in early trade and is selling at 30.86 per barrel.

It was a steady start in London yesterday, which took a positive track for a brief period on the opening, the New York arabica market however, opened the floor on an immediately softer note and both markets lost ground as the morning session progressed. The lack of producer seller activity present in the market, as both leading producer countries celebrate national holidays this week, ought to have theoretically provided a mild boost to the markets, or if anything a steady session. The overall negative day within the commodities sector did lean into the coffee markets, an influence which stems from general macroeconomic slower growth concerns, to spill into the coffee markets yesterday. In addition, it was a more technically driven day, within the New York arabica market as first notice day approaches. The impact of overall positive export performance and news coming to the markets, from leading coffee producer countries is a factor that is mostly absorbed by the markets already, however the prospective larger crop to start to come from Brazil in six months’ time, perhaps weighing in and lacking further fresh fundamental news to guide direction. Thus after a heavy day of trade which gapped lower as the day progressed in New York and posted a similar lower track after a good volume day in London, both markets finished the day, on a softer note, to see New York close on the day’s lows and London marginally higher than the lows of the day in this market, against the prices set yesterday, as follows:

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

MAR 1386 – 41                                          MAR 115.75 – 4.65
MAY 1416 – 38                                          MAY 117.95 – 4.45
JUL 1445 – 36                                               JUL 119.95 – 4.30
SEP 1472 – 33                                               SEP 121.75 – 4.10
NOV 1495 – 31                                            DEC 124.00 – 3.85
JAN 1510 – 28                                            MAR 126.20 – 3.65
MAR 1539 – 28                                          MAY 127.60 – 3.50
MAY 1561 – 28                                            JUL 128.95 – 3.30
JUL 1582 – 28                                              SEP 130.20 – 3.20
SEP 1609 – 16                                             DEC 131.70 – 3.05