Market Reports Blog / Market Reports / Coffee Market report 18th August 2014 to 22nd August 2014

Coffee Market report 18th August 2014 to 22nd August 2014

COFFEE MARKET NEWS 18th August – 22nd August 2014

 

‘’Brazilian and Colombian arabica were in demand in Europe's cash coffee market this week, but overall business volumes were relatively thin, dealers said on Friday.’’

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-14 c/lb

193.10

186.15

188.95

189.60

187.35

Lon Nov-14 $/t

1956

1947

1969

1988

1997

£/$

1.6729

1.6616

1.6602

1.6587

1.6579

 

Futures Markets:

Arabica: the week started with a jump to 193 level, and then subsidies to level below 190 for the rest of the week. All settlements were between1-3 c/lb each day. Of course daily volatility was very high 3-7 c/lb. Overall; it was calmer week then the previous one.

Robusta: compare to arabica, started low and finished high. Maybe the market was trying to guess the next move of the NYC. There was not much volatility during the days.

Currency: On the FX markets, the mixed UK data saw GBP/USD slip to a low of $1.6561, while GBP/EUR eased to a low of €1.2477. Meanwhile, EUR/USD continued its downward path falling to a low of $1.3241.

Physical Markets:

Brazil: Farmers and researchers are detecting serious damage to Brazil's coffee plants after a drought earlier this year and say farmers in 2015 could harvest the smallest arabica crop in a decade. The worst stretch of hot, dry weather on record in Brazil's coffee belt has already cut 30 percent from the nearly harvested 2014 crop in some regions and pushed arabica prices up 55 percent in the last 12 months to a two-year high.

Colombia: 2015 arabica coffee crop faces little risk of damage from dry weather even if an El Nino weather anomaly occurs early next year, according to the chief agronomist at the farmer-funded Federation of Coffee Growers. The anomaly is caused by a cyclical warming of Pacific Ocean waters and tends to bring dryness to Colombia and Central American coffee growers and can lower yields. But meteorologists say the chances one will occur are now slipping as time goes on. "If there is an El Nino between December and March it wouldn't be that serious, first because it would be quite mild and second because it wouldn't affect all areas ... I'm not worried about it in general," Carlos Armando Uribe told Reuters earlier this week.

Nicaragua: exports from Nicaragua rose 20.6 percent in July to hit 197,560 60-kg bags, the country's national export centre Cetrex said on Monday. Shipments through the first ten months of the current 2013-14 harvest season totalled 1.49 million bags, down 11.7 percent compared with the same ten-month period during the previous 2012-13 season.

Costa Rica: production in Costa Rica is seen growing by 4.5 percent in the harvesting season set to begin in October versus the current season that is about to end, the country's national coffee institute, ICAFE, said on Thursday. The ICAFE forecast estimates the 2014/2015 harvest at 1.56 million 60-kg bags. The institute said in a statement that better use of fertilizers and preventative efforts to control plant diseases such as roya, a tree-killing fungus, are the primary factors behind the expected gains.

Indonesia: bean production is estimated to decline 14 percent to 600,000 tonnes this year from last year's 700,000 tonnes, an industry group said on Thursday. "Unfavourable weather and outbreaks of pests and diseases are causing the decline," Irfan Anwar, chairman of the Indonesian Coffee Exporters and Industry Association told reporters. In May, the same association forecast Indonesia's coffee bean production this year would reach 700,000 tonnes.