It was a tale of two markets last week, with London moving sharply higher and New York moving a little lower into new lows for the move.
New York Market
- The New York market action remains weaker overall due to ideas of good supplies and reports of weak demand.
- These ideas were reinforced last week as the ICO projected adequate supplies for the coming year and the GCA showed record supply levels in the US.
- The cash market remains very slow with almost no interest seen from roasters as they see the big US supplies and think that prices will remain cheap. Offers remain in the cash market, and differentials are stable.
- New York has featured some buying support from speculators as they have become more two sided in trading the market as the Winter season is approaching in Brazil. However, speculators and commercials are still mostly bearish.
- London had been strong as news surfaced that supplies in the cash market are tight due to reduced Vietnamese selling and tight supplies in the country.
- Offers are less and seen at high prices from Robusta countries such as Vietnam.
- Indonesia and Brazil are also very low on supplies.
- The Robusta market is still relatively strong compared to Arabica and due to the short supplies available to the market as it works to curb demand through the higher prices.
Taken from insidefutures.com