Certified Coffee Stocks and Market Update

On the previous day, the stock of certified washed Arabica coffee registered with the New York exchange increased by 4,340 bags, bringing the total to 854,894 bags. Of this, 97.23% (831,255 bags) are held in European warehouses, with the remaining 2.77% (23,639 bags) stored in the United States. Notably, 46.94% (401,298 bags) of these certified stocks consist of Brazilian washed Arabica coffee, while 12.08% are from Honduras. Meanwhile, the number of pending grading stocks saw a decrease of 13,600 bags, leaving 42,871 bags awaiting certification.

The arbitrage between the November 2024 and December 2024 contracts for the London and New York markets narrowed yesterday, closing at 19.49 U.S. cents per pound (Usc/Lb), equating to a 7.90% price discount for London robusta coffee.

It was an overall positive day for the commodity markets. Robusta Coffee, Cocoa, Sugar, Corn, Soybean, Wheat, Silver, Platinum, and Palladium all ended the day with gains, while Arabica Coffee and Gold saw slight declines. The U.S. Dollar opened the day trading at 1.305 against the British Pound, 1.102 against the Euro, and 5.669 Brazilian Reals.

Brazilian Coffee Export Data for August 2024

The Coffee Exporters Association of Brazil (Cecafé) released its export figures for August 2024, showing a modest increase in green coffee exports of 1.4% year-on-year, with a total of 3.4 million bags shipped. Arabica coffee exports, however, declined by nearly 7%, with 2.49 million bags exported. On the other hand, robusta coffee exports surged by 31% compared to the same period last year, reaching 925,000 bags.

Further Stock Developments and Market Trends

Additionally, certified washed Arabica coffee stocks in the New York exchange increased by 3,867 bags yesterday, bringing the total to 850,554 bags. Of this amount, 97.75% (831,395 bags) are stored in Europe, while 2.25% (19,159 bags) are held in the U.S. Brazil washed Arabica accounts for 46.65% (396,818 bags) of the total certified stocks, while Honduras contributes 12.15%. Pending grading stocks saw a decrease of 2,031 bags, leaving 56,471 bags waiting for certification.

In terms of market activity, the arbitrage between the November 2024 and December 2024 contracts for the London and New York markets widened to 25.08 Usc/Lb, representing a 10.15% price discount for London robusta coffee.

It was a mixed day across the commodity markets. Coffee, Wheat, Silver, Platinum, and Palladium markets showed strength, while Cocoa, Corn, Soybean, and Sugar markets weakened. Gold prices remained relatively stable. The U.S. Dollar began the day trading at 1.309 against the British Pound, 1.104 against the Euro, and 5.663 Brazilian Reals.

This updated report highlights key movements in certified Arabica coffee stocks, arbitrage activity, and Brazilian export data, offering insight into current market trends and dynamics.

Hoang Minh
KAIFarm Team®