Market Reports Blog / Market Reports / Coffee Market Report 18th March to 22nd March 2013

Coffee Market Report 18th March to 22nd March 2013

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY May-13 c/lb

134.35

135.90

136.35

133.75

135.30

Lon May-13 $/t

2176

2155

2152

2153

2139

£/$

1.5141

1.5084

1.5034

1.5135

1.5188

 

 

Futures Markets:

 

Arabica: The market climbed on Friday on speculative short covering ahead of the Easter holiday. The speculative short covering was induced by traders that anticipated less commercial selling next week as majority of producing countries will slow down business.

Robusta: London stocks dropped 342 lots in the last 2 weeks but did not result in the market noticeably moving. We have entered the off season for Vietnam and look forward to prospects from Indonesia but the possibility of an upswing of stocks between end of this month and year end becomes less likely.

Currency: Last week we saw another stressful week for the Eurozone as the markets were served a stark reminder that the region’s debt crisis is far from over.  Sterling found itself in the largest weekly gain against the Euro in over a moth as Cypriot banking problems weighed on the Euro. 

 

 

Physical Markets:

 

Brazil: Santos port congestion is causing some headaches as 70 ships await berthing, this has had a knock-on effect with long truck queues.

Colombia: The Coffee Federation of Colombian stated that it expects the country to produce nearly 10 million bags in 2013 up from 7.7 bags in 2012. On the 18th March the government gave new subsidiaries to farmers to push the flow of coffee after recent strikes.  

Nicaragua: Exports fell 7.5% in February compared to the same month a year earlier reaching 117,747 bags in the month according to Cetrex.

India: Noticeable demand for unwashed Robusta has been booked at competitive levels.

Kenya: The max price of AA rose once more by $18 per bag at last week’s auction. 22774 bags were offered and only 5583 bags were sold.

Tanzania: 17000 bags were on offer, coffee flow very limited mainly from the south. More rain has been reported with heavy showers in the Northern region. Next auction is scheduled for 4th April.

Ethiopia: Volume traded at the ECX decreased due to high auction prices compared to the NYC-market. Trades of only washed qualities in small volume have been seen – this has resulted in warehouses in Addis being close to full capacity as high prices halt demand.

Dominican Republic: Roya has affected 60% of plantations in southern regions of the country. Barahona and Valdesia are spraying trees with pesticides for the new season crop.