June 24 2019
The latest Commitment of Traders report from the New York arabica coffee market has seen the Non-Commercial Speculative sector of this market increase their net short sold position within this market by 2.04%; over the week of trade leading up to Tuesday 18th. June; to register a new net short sold position of 40,168 Lots. This net short-sold position which is the equivalent of 11,387,450 bags has most likely been marginally decreased again, following the period of mixed but overall more positive trade that has since followed.
The latest Commitment of Traders report from the London robusta coffee market has seen the Speculative Managed Money Sector of this market increase their net short sold position within the market by 15.01% over the week of trade leading up to Tuesday 18th. June; to register a short-sold position of 27,904 Lots. This net short sold position which is the equivalent of 4,650,667 bags has most likely been marginally decreased again, following the period of mixed but overall more positive trade that has since followed.
Friday with many players in Brazil having taken a bridge day holiday post Thursday’s Corpus Christi holiday, as a relatively quiet day of trade for the physical coffee market and likewise, for the New York arabica coffee market. While a steady to firmer Brazil Real, also contributed to somewhat subdued trade. Albeit that it did not counter some selling pressure coming to the fore, within the New York market.
The Coffee Institute in Honduras have reported that while the volume of coffee sales for the first eight months of the present October 2018 to September 2019 coffee year was only 1.9% lower than the same period in the previous coffee year, that the value of coffee exports was approximately 14% lower than the same period last year.
This lower value influenced by the lower reference prices of the New York market and an illustration of the financial stress that the relatively high cost washed arabica coffee farmers are presently experiencing, which is also resulting in the internal market price resistance within the Mexico and Central American producer bloc. A factor that manifests itself in terms of the lack of delivery of coffees at prices low enough, to be tendered to the slowly declining certified coffee stocks of the New York exchange.
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