Market Reports Blog / Market Reports / Coffee Market report 20th October 2014 to 24th October 2014

Coffee Market report 20th October 2014 to 24th October 2014

COFFEE MARKET NEWS 20th October – 24th October 2014

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-14 c/lb

199.40

199.60

191.10

193.30

191.50

Lon Jan-15 $/t

2060

2059

2039

2022

2028

£/$

1.6162

1.6108

1.6028

1.6028

1.6096

 

Futures Markets:

Arabica: As the rain finally came to main coffee growing areas in Brazil; the market started to give back some of the recent gains as funds liquidated parts of their position. The daily ranges were wide, with most days posting a 10ct gap between highs and lows. Overall the week settled 15 c/lb lower than its Monday morning opening.

Robusta: as usual Robusta trailed the New York Arabica market this week, but with slightly less enthusiasm, Still no substantial signals have been received from Vietnam to impact the market in any direction, and so we end the week a mere 30usd/mt softer than we began.

Currency: On the FX markets, Sterling was under pressure following the downbeat data with GBP/USD slipping to a low of $1.5993 while GBP/EUR eased to €1.2627.

Physical Markets:

Brazil: arabica coffee beans for delivery in 2015 are selling at their deepest discounts in years versus U.S. futures as exporters race to cash in on record local prices, some betting that a deep drought has not done as much damage as feared. Drought ravaged Brazil's coffee-growing areas in early 2014, and a dry spell earlier this month exacerbated concerns that a poor 2015/16 crop would lead to a global deficit, causing New York ICE arabica coffee futures to double this year to their highest since early 2012.

Colombia: Producers are failing to keep up with other coffee growers in boosting productivity and lowering costs, a government-commissioned researcher said on Wednesday, posing a challenge to the sector as it tries to recover diminished market share. The world's biggest producer of washed, mild arabica coffee has seen its global market share plunge from roughly 20 percent at one time to around 10 percent now, partly due to a run of poor harvests that prompted roasters to seek substitutes.

Costa Rica: has cut the impact of the destructive leaf fungus roya during the past year by 40 percent, the Costa Rican Coffee Institute ICAFE said on Wednesday. ICAFE said it believed rising international coffee prices have made farmers more mindful of their crops and pay more heed to measures aimed at combating roya, which ravaged last season's coffee harvest in Central America. A survey carried out in August 2014 found that only 2 percent of Costa Rican coffee farms were severely affected by the fungus, down from 16 percent in November 2012.

El Salvador: will continue to receive rain during the rest of October according to the national weather forecast. Rain at this time of the year is very dangerous since it can crack the cherry, making it fall from the tree and begin a fermentation process. Also, the spreading of rust represents a big threat.

Kenya: The maximum price of Kenya's top grade AA coffee fell by 12% per 50 kg bag at this week's auction on Tuesday from last week's sale, the Nairobi Coffee Exchange said.

Tanzania: average arabica coffee prices rose at auction last week, buoyed by strong demand from exporters and higher New York markets, the regulator Tanzania Coffee Board (TCB) said on Tuesday.

Vietnam: the world's second-largest coffee producer, has slowed sales of fresh beans after global prices have eased, but deliveries of old-crop beans were still rising before the main harvest peaks, trader said on Tuesday. The top robusta producer is expected to enter its harvest peak in about a month, while exporters have been using the stock carried over from the previous 2013/2014 season ended last month to meet delivery commitments.