April 28, 2024

Coffee Mkt Recap 22 Apr - 26 Apr 24

By Oliver Broster

New York

New York came under pressure this last week and was down 10.80 c/lb. (-4.47%).  At the same time open interest continues to fall away -2,516 lots.  Volume was much more subdued that in the previous three weeks.

London

London continues to put in a solid performance, especially when taking into consideration what was going on in NY, the market ended up +$313 / MT (7.67%).  Open Interest in London continues to increase indicating that there is additional participation.  Volume was down marginally over the previous week, however remains at good levels.

 

 

 

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    New York

    Another strong week in New York (the fifth positive week in a row) the market closed + 3.65 c/lb. (+1.65%).  A big day on Fridays as the market moved from 232.50 c/lb to 224.70 c/lb ( -7.80 c/lb.) this was on much higher volume than during the rest of the week.  Open Interest (OI) through to Friday increased + 13,605 lots (+5.53%), it will be interesting to observe the OI numbers for Friday which will be released early in the afternoon (UK time) on Monday.

    The volume increased by 62% in comparison with the previous week.  The major change being the increase in the spread activity during the week.  At the same time the OI in the first position fell from 88,373 lots (31/05) to 78,456 lots (06/06) a decline of 9,917 lots.  This within the context of an increase in the overall OI of 13,605 lots.

    London

    The move in London was stronger than in NY and the market closed up + $ 141 /MT (3.54%).  This was the fourth consecutive week of gains in London.  Open interest was up through to Thursday +4,053 lots confirming increasing participation in the move, and whilst there was a significant sell off on Friday from an open of $4,280 / MT to a close of $4,125 / MT down - $ 155/ MT, the volume was not elevated. 

    Volume was up 20% on the previous week and again the major contributor to this was the spread volume which increased +36.34% in comparison with the previous week. 

    Coffee Comitment of Traders

    New York

    The Managed Money (MM) increased their long position during the week by +6,207 lots (+4,635 lots long and – 1,572 lots short) making them net long +63,220 lots long.  8 MM traders joined on the long side and 2 MM traders joined on the short side.  Earlier this year we reached a high of net long +72,818 lots on the 16/04, the current reporting number is the 5th highest / ranked since Jan ’22, all higher occurrences occurred in Apr’24.  The implication being that the probability of MM further increasing their long (whilst not implausible) is declining. 

    At the same time the Producer Merchants increased their net short by -4,229 lots (+5,310 lots long and + 9,539 lots short) making the PM Net short -59,702 lots. 

    In comparison with the same period last year:-

    London

    The MM increased their net long position by +3,029 lots (+2,811 lots long and -218 lots short, making them net long +28,625 lots long. 

    The PM increased their net short position selling -2,299 lots (-2,266 lots long and + 33 lots short) making their net position -32,735 lots short.

    In comparison with same period last year:-

    Unlike in New York both the PM Long and short remain behind where they were at the same time last year and the PM Short (hedges of purchases from origin) remains significantly behind.

     

     

     

     

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