After opening one-quarter cent higher, New York coffee rallied steadily over its first six hours, triggering buy stops at six-day highs. The remainder of the session we sold off, settling precisely where we opened, ending the streak of closing below the day's opening at nine. The London market outperformed, closing above Friday's high and near the high of the day. Today's comparative performance of the two markets is a microcosm of their relative performance thus far this year: in the month of May, NY coffee was up 0.6%, London coffee up 5½%. Thus far in 2016, NY coffee is down 4.1%, London coffee up just over ten percent.
July New York (KCEN6) settled near its low (8%), up one-quarter cent. Volume was twenty-percent above average at an estimated 48,287 lots including an estimated 808 EFP's, 80 EFS's, 823 TAS and 17,661 spreads. 5,412 calls and 3,445 puts also traded. The KCEN6-LRCN6 arbitrage: 47.07¢. Ratio: 1.6297. €: $1.1132-0.1%. BRL: 3.6266/$-1.4%. CRB: +0%. Crude oil: -1.3%. S&P500:-0.4%. Open interest: 195,586+1,959 (50-day stochastic: 80%; 125-day: 75%).
Coffee “C” certified stocks were down 41,460 bags today to 1,312,599. Antwerp stocks dropped the most, down 35,000 bags. Honduran coffee showed the biggest drawdown, down 24,755.