New York
A positive week in NY as the market closed up 5.45 c/lb (+2.71%). The open interest continues to decline -4,981 lots (-2.22%) continuing to indicate that participants are exiting the market. Volume was down on the previous week -56,969 lots (-23%), mostly made up by reductions in the spreads and the outright volume.
London
A positive week in London with the market up $78 / MT (+2.27%). Open interest increased + 4,374 lots (5.56%) indicating that participants are entering the market on the back of this move. Volume was also down in comparison with the previous week -7,289 lots (-8.77%), however the percentage decline was much lower than in NY.
Coffee Markets Commitment of Traders
New York
The Manage Money (MM) continued to reduce their net long position this week -6,755 lots making their net long position 54,069 lots. This is still elevated and towards the upper end of normal levels, but far below the 72,818 net long position on the 16 April ’24 when the market was trading at 228.40 c/lb. Since that time the MM have sold -18,749 lots and the market has moved -27.55 c/lb.
The Producer Merchants (PM) continued to reduce their net short position, buying + 5,693 lots making their net short position -47,992 lots. This was achieved via the increases in long by + 618 lots and the reduction in shorts by – 5,345 lots.
In comparison with the same time last year the PM Long is very much in line whilst the PM short is well below. The implication being that the physical hedged purchases held by the PM are very much reduced i.e. Producers have not responded to the move lower.
Since the cut off for the reporting of the COT data the Open Interest through to Thursday has declined by another -3,418 lots, implication being that MM continues to exit probably.
London
The MM in London continued to reduce their net long position -2,049 lots and their net long is now +21,800 lots. The size of this position is now well within normal parameters and therefore is neutral, as they have plenty of room to either add or reduce this position.
The PM also continued to reduce their net short position +2,193 lots (+ 6,843 lots long and +4,650 lots short) making their net position -24,862 lots short
Again, as per NY the PM Long is in line with where it was last year whereas the PM Short is well behind, considering the situation in the physical market and the movement in the PM Long this is surprising.
In spite of the reduction of the MM Long position the OI has increased up and until the COT reporting cut off date and since then through to Thursday.