The Ivory Coast as west Africa’s leading robusta coffee producer, have reported that their coffee exports for the month of September were 95,817 bags or 58.51% lower than the same month last year, at a total of 67,950 bags. This has contributed to their country’s cumulative coffee exports for the October 2019 to September 2020 coffee year to be 269,166 bags or 15.73% lower than the same period last year, at a total of 1,441,533 bags.
There have been further news reports overnight meanwhile that typhoon Molave has made its way into some low-lying areas found in the Vietnam highlands resulting in localised flooding. Reports suggest that Molave is expected to trigger intermittent rainfall over the next 10 days across the Vietnam coffee belt in the Central Highlands. The full extent of the storms impact is yet to be seen or quantified but this will be monitored in the coming days as the storm moves further ashore and inland.
The weather reports from Brazil continue to come to fore with good rainfall reports for all of the major coffee districts in the country, this following localised rainfall through the month thus far, to assist to set the flowerings for the next 2021 coffee crop. Weather reports suggest that rainfall across most major coffee districts shall marginally taper off towards the first week of November, this albeit still early days in terms of the October to March rain season, is leading many to speculate that the country and despite biennial bearing factors, is due for a good coffee crop for next year. Meanwhile Monday will be the Dia de Finados (All Souls Day) Public holiday in Brazil and coming to the fore as a long weekend, which will most likely see some internal market players off the field of play for today.
The December 2020 to January 2021 contract arbitrage between the New York and London markets widened yesterday: to register this at 43.95 usc/Lb. This equates to 42.02% 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 2,230 bags yesterday, to register these stocks at 1,149,043 bags, with 94% of these certified stocks being held in Europe at a total of 1,080,283 bags and the remaining 7% being held in the USA at a total 68,760 bags. There was meanwhile a larger in number 7,136 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 62,674 bags.