Market Reports Blog / Market Reports / Coffee Market Report 10 to 14 June 2013

Coffee Market Report 10 to 14 June 2013

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Jul-13 c/lb

128.75

          127.70

122.75

125.25

122.25

Lon Jul-13 $/t

1845

1798

1747

1731

1739

£/$

            1.5567

1.5599

1.5675

1.5663

1.5683

 

 

Futures Markets:

 

Arabica: This week recorded the biggest daily decline in 5 months losing 5% of its values as the speculative community continued to follow the weakness of the market forcing origin to follow suit – creating a strong bearish position. The question on everyone’s mind is how low the market will go to – fundamentally the market is acting the way we would expect with the high levels of coffee around.

Robusta:  Speculators increased their net short positions to 5067 lots - this resulted in the recent drop in the market. We are seeing the market driving itself to 32 months, July/Sep spread continued to gyrate with good buying showing around -$30 but selling appearing near to the -$20.

 

Currency: This week we hit a four month high as the GBP/US$ gained momentum and pushed back over 1.56 mark. Strong labour data surprised the markets as employment reach a record high of 29.8 million aiding the positivity of the strengthening £.

 

 

Physical Markets:

 

Brazil: 2013/2014 crop should produce about 52.9 million bags, this figure is higher than forecasted of 49.1 million which Safras & Mercado who are analyst predicted previously.  

Ethiopia: Container shortages are providing a problem in the port of Djibouti as some shipments are being delayed. Seems to be problems in most aspects in regards to coffee, producers are requesting high prices and exporters are attempting to cover their short position.

Kenya: Next auction is scheduled for June 18th before the annual break which will last until the 23rd July.

El Salvador: Exports rose 5.9% in May compared to the same month a year ago, reaching 128947 bags.

Indonesia: Supply constraints have forced exports to cancel contracts to ship up to 4000 tonnes of beans so far in June; this quantity could continue to rise. Heavy rains have disrupted harvests and plunging global prices prompted farmers to hold back.

India: Prices were steady at last week’s auction amid muted trading activity in the physical market.

PNG: Arrivals are delayed a lot further than some had expected. Low stocks and some shorts were keeping the internal prices very firm. Excellent demand from outside could not be satisfied.