Market Reports Blog / Market Reports / Coffee Market report 11th August 2014 to 15th August 2014

Coffee Market report 11th August 2014 to 15th August 2014

COFFEE MARKET NEWS 11th August – 15th August 2014

 

World coffee exports in June were little changed though year-to-date they are down 3.5 percent, the International Coffee Organization (ICO) reported on Monday, noting that the global stocks-to-use ratio is on a long-term decline.

 

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Sep-14 c/lb

189.15

184.60

185.25

184.10

188.75

Lon Sep-14 $/t

1986

1964

1965

1945

1951

£/$

1.6786

1.6811

1.6690

1.6684

1.6693

 

Futures Markets:

Arabica: looking at the settlements through the week it seems that the week was a bit dull, few cents down, few cents up, settlements ranged 5c/lb. Volatility still remains within the inter-day trading = hitting a whopping 10c/lb. It seems as Origin has sold enough through the last rally and industry is looking for opportunities.

 21st will be the last notice day, for switching the Sep to Dec.

Robusta: LIFFE started the week a bit aggressively, towards the latter we saw comfort back around 1950 $/mt. Not much volatility just about 30$/mt during the week.

Currency: On the FX markets, despite the lack of Q2 euro zone growth the euro was resilient as EUR/USD picked up to a high of $1.3407, while GBP/EUR eased to a low of €1.2439. Meanwhile, GBP/USD continued to weaken hitting a low of $1.6654.

Physical Markets:

Brazil: coffee crop, the world's largest, was 86 percent harvested by Aug. 7, ahead of the five-year average harvest rate for this time of year of 81 percent, local crop analysts Safras e Mercado said on Monday. Early in 2014, the coffee crop suffered losses from a severe drought, which crimped production and accelerated maturation of the crop. The current crop is seen at 48.9 million 60-kg bags, of which 41.97 million have been harvested, Safras said.

El Salvador: exports from El Salvador fell 84 percent in July compared to the same month a year earlier, mostly because of damage from the tree-killing fungus roya, the country's national coffee council said on Thursday. Shipments in July totalled 20,221 60-kilogram bags. Exports during the first 10 months of the current 2013/2014 season reached 476,343 bags, 54 percent below the same period during the previous harvest.

Indonesia: expects its coffee exports to increase to US$1.4 billion until the end of this year although exports were recorded at only US$333 million in the first semester. "Our target is more or less the same as last year's. We hope to catch up in the second semester," deputy minister of trade Bayu Krisnamurthi reported after a press conference for the 3rd Indonesia Coffee Festival here on Thursday.

Kenya: The maximum price of Kenyan grade AA coffee rose at auction on Tuesday by 3% per 50-kg bag from last week's sale, the Nairobi Coffee Exchange said on Tuesday. Kenyan beans, which are of high quality, are sought after by roasters who blend them with coffee from other regions, helping the relatively small east African producer punch above its weight in global markets.

Uganda: exports fell 20 percent to 314,304 60-kg bags of coffee in July compared with the same month in 2013 due to drought, regulator Uganda Coffee Development Authority (UCDA) said on Thursday. Coffee exports earned a total $37.8 million compared with $45 million in July 2013, a UCDA source said. Between October 2013 to July 2014, coffee exports stood at 3,028,534 bags compared with 3,039,934 bags that were exported in the year ago period, the UCDA said.