July 1st - Evening Coffee Report

​     A solid end to a strong week for coffee. The New York market traded mostly within the upper half of yesterday's range  - actually took out yesterday's high by two ticks.  The Sep16 contracts closed at their highest levels since August 2015 in both the New York and London markets. Spot New York saw its highest weekly close since March 2015. Volume in both markets, though, remains less than ideal.
    September New York (KCEU6) settled midrange (53%), up three-quarters of a cent. Volume was thirty-six percent below average at an estimated 28,550 lots including an estimated 800 EFP's, 21 EFS's, 936 TAS and 5,726 spreads. 7,988 calls and 5,841 puts also traded. The KCEU6-LRCU6 arbitrage: 67.45¢. Ratio: 1.8521. €: $1.1133+¼%. BRL: 3.2331/$-0.3%. CRB: +0.9%. Crude oil: +1.6%. S&P500:+½%. Open interest: 174,603+455 (50-day stochastic: 15%; 125-day: 12%).
     September London (LRCU6) settled near its high (93%), up twenty-eight dollars. Volume was forty-one percent below average at an estimated 10,484 lots including 2,072 spreads and 417 EFP's. 6,936 calls and 2,616 puts also traded. Open interest: 97,469+681 (50-day stochastic: 4%; 125-day: 1½%).
     ICO May coffee exports were down 6.8% from 2015 to 9.316 mln 60-kg bags from 9.992 mln. The eight-month total, however, was 1.6% higher than one year earlier at 48.417 mln bags from 45.694 mln.
     June coffee shipments from Indonesia's Sumatra island were down over 69% from last year to 9,255.6 tonnes from 30,314.6 government trade data obtained by Reuters shows.
     CFTC reports that large speculators were net buyers of 2,037 lots of Coffee “C” in the week ending June 28th leaving them net long 29,036. Large hedgers sold 1,687 lots to increase their shorts to 67,042. Index traders sold 329 lots (long 33,044). Small traders sold 21 (long 4,961).
     The New York coffee market, and office, will be closed on Monday for U.S. Independence Day celebrations. The London market, and office, will be open and ready to handle your hedging needs.