Coffee Market report 9th June 2014 to 13th June 2014

COFFEE MARKET NEWS 9^th June – 13^th June 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: NY did falter late on Friday but overall it was a positive week with a lack of fundamental news. The bearish trend strength is weakening but don’t count it out just yet.

Robusta: flat-price plays and the general sentiment surrounding the market is that outrights will retreat before month end. An incredibly small range for Robusta, trading in a 13 buck range for the entire session. For candlesticks followers this created a doji candle, a signal of indecision – although at the bottom of a trend can often be a signal of a reversal.

Currency: On the FX markets, Sterling was pushed higher by comments from BoE Governor Mark Carney at last night’s Mansion House speech that the first rise in UK interest rates “could happen sooner than markets currently expect”. Early morning trading GBP/EUR rose to €1.2520 and GPB/USD to $1.6987.

Physical Markets:

Brazil: exported 2.65 million 60-kg bags of green coffee in May, less than the 2.73 million bags shipped in April, the Council of Green Coffee Exporters said Monday. Even with drought damaging the crop, which is entering the peak-harvest period, Cecafe said recently that Brazil likely will increase coffee exports by 6 percent this year because of plentiful stocks.

Colombia: Coffee flow is still really slow, made even less big by growers refusing to sell coffee at subsidy which was given as free put. Colombian peso rate at Exchange is falling below 1880 and making things worse.

Guatemala: Export is quite as the differentials are still low, most of exporters are not really happy as they sold coffee earlier for lower differentials and still difficult to recover for them.

Kenya: The top price of the benchmark Kenyan coffee grade fell by 5% for 50 kg bag at this week's auction to compare with last week, the Nairobi Coffee Exchange said. Kenya is a relatively small producer of coffee but its beans are much sought after by roasters to blend with those of lower quality from other producing countries.

Indonesia: coffee output is likely to plunge to a three-year low in 2014/15 due to unfriendly crop weather while higher domestic consumption will soak up about half the produce, a Reuters survey showed, curbing sales by the key exporter. Indonesia's output is expected to drop to 8.90 million 60-kg bags in the crop year to March 2015, from an estimated 10 million bags a year ago, according to a survey of six dealers and analysts, as well as forecasts by the U.S. Department of Agriculture attached in Indonesia.