Market Reports Blog / Market Reports / Coffee Market report 22nd September 2014 to 26th September 2014

Coffee Market report 22nd September 2014 to 26th September 2014

COFFEE MARKET NEWS 22nd September - 26th September 2014

 

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-14 c/lb

179.40

180.90

189.10

182.30

186.05

Lon Nov-14 $/t

1936

1929

1965

1944

1955

£/$

1.6357

1.6386

1.6282

1.6312

1.6246

 

Futures Markets:

Arabica: we saw a very active week on the terminal market last week as prices bounced around like a YoYo – daily ranges in excess of 8 cts were seen, with corrective days following each high and low – in the end though, we closed the week roughly 8cts higher than where we began at 186.05cts.

Robusta: The Liffe market also saw some good volumes traded last week, and yet again mirrored New York somewhat, albeit in a more genteel fashion.

Currency: On the FX markets, the euro was under pressure as EUR/USD slipped to a 22 month low of $1.2697, while GBP/EUR touched a 26 month high of €1.2845. The US dollar also made gains against Sterling as GBP/USD slipped to a low of $1.6274.

Physical Markets:

Brazil: Rain will reach more than a third of Brazil's drought-damaged coffee fields in the main southeast region early next week, which should trigger flowering for the 2015 harvest, global forecaster Commodity Weather Group said on Monday. In its daily crop weather forecast, CWG said rains that had fallen over parts of Brazil's southern coastal region over the weekend had only penetrated inland enough to reach 10 percent of the coffee-growing areas. Another wave of showers due on Thursday would probably behave similarly. South Minas Gerais state trees that were scorched by a severe drought and high temperatures in January and February would have to wait longer for widespread rains. A slightly stronger front is expected to push rain deeper into the state of Minas Gerais and other coffee areas early next week, CWG said.

Nicaragua: exports from Nicaragua fell 15.2 percent in August to 135,429 60-kg bags, the country's national export centre Cetrex said on Tuesday. Shipments through eleven months of the current 2013-14 harvest season totalled 1.624 million bags, down 11.9 percent compared with the same period during the previous 2012-13 season.

Kenya: The maximum price of Kenya's top grade AA coffee fell at this week's auction by roughly 5% per bag from last week's sale, as top cupping lots remain elusive, whilst the fly crop continues to be offered. Main crop coffees will only be available in November / December for shipments January onwards.

Tanzania: Average arabica coffee prices in Tanzania, Africa's fourth-largest producer, edged higher at auction after prices rose in the New York coffee market, the country's coffee board said on Tuesday. Prices of the robusta variety of beans fell at the same auction. The state-run coffee board said a total of 19,576 bags were offered at the latest sale and that 18,648 bags were purchased. At the previous sale, a total of 23,536 60-kg bags had been offered for sale, with 23,336 bags sold.

Uganda: exported 268,033 60-kg bags of coffee in August, down from 318,338 bags shipped in the same month a year ago, an industry regulator said on Monday, extending a pattern of lower exports this year.

Vietnam: 2014/15 coffee crop is expected to fall to around 25 million 60-kg bags, the vice chairman of Vietnam's coffee and cocoa association Vicofa said on Tuesday. Speaking on the sidelines of a forum hosted by the International Coffee Organization (ICO), Vicofa's Do Ha Nam said production was expected to fall around 10 percent from the previous year, due to a combination of aging trees and heavy rain during flowering in some areas.