Market Reports Blog / Market Reports / Coffee Market News 23rd to 27th September 2013

Coffee Market News 23rd to 27th September 2013

Coffee Prices, Futures and Currency close levels:







NY Dec-13 c/lb.






Lon Nov-13 $/t













Futures Markets:


Arabica:  NYC collapsed on Friday hitting new multi-year lows - breaking the mold for what seemed like a fairly steady week.  We know that fundamentals point to good physical supply in the season ahead and this must weigh on price. But this latest move is unlikely to have been triggered by such a story and is based much more closely to the technical aspects of the markets.

Robusta: Following on from NY’s dramatic drop post London’s settlement yesterday it was fully expected to see Robusta fall near weekly lows as we opened today.  From the off immediate pressure was felt additionally on the structure, front Nov/Jan trading below parity, and although volumes didn’t reflect the direction initially, the theme for the week appeared to be set.



Currency:  Sterling was boosted on Friday after Bank of England Governor, Mark Carney, told a newspaper “the recovery has strengthened and broadened” and he did not see a case for quantitative easing. GBP/USD rose to $1.6146 while GBP/EUR peaked at €1.1956 before easing back. GBP has found further support this morning as worries over the US debt position unwind.



Physical Markets:


Brazil:  Some local action but farmers are still holding on to their coffee. Differentials remain steady. Real slightly weaker at 2.23/$.


Colombia: Flow starting to pick up in the lower regions. Short positions have found differentials falling but the combination of the weak BY and the US$ has not allowed replacement levels to follow suit.

Honduras: Activity starting to pick up little, exporters has been selling small quantities for shipment from December onwards.  Crop development continues at normal pace. Weather conditions are continuously very favourable for the new crop.

Ethiopia: The situation of the ECX does not allow to offer interesting prices nor sundried nor washed coffees. European spot sundried differentials are seemingly increasingly on a daily basis.

Tanzania: Northern standards maintain a small premium over southern qualities as per most seasons, although at this week’s auction they were only 15% of the offer Arabica quantity.

Uganda: Robusta quiet, though asking differentials a trace softer. Since October 2012 around 11 million seedlings were planted within the whole country – mainly robusta.

India: Activity in the market is very limited consequent to the sudden appreciation of the Rupee by 8% and the drop in Liffe.