Market Reports Blog / Market Reports / Coffee Market Report 23rd February 2015 to 27th February 2015

Coffee Market Report 23rd February 2015 to 27th February 2015

COFFEE MARKET NEWS Week Ending: 27th February 2015

 

23rd Feb

24th Feb

25th Feb

26th Feb

27th Feb

NYC

148.25

148.90

143.45

140.55

1.4050

LIFFE

1948

1918

1886

1869

1907

GBP / USD

1.5459

1.5504

1.5540

1.5440

1.5397

 

 

 

 

 

 

Commentary

 

A continuation of last week was seen on the market this week, as support levels were broken and selling pressure pushed the market lower and lower with 140 in its sights. The collapsing Brazilian real has not helped adding fuel to the bears plight to sell the market. Any show of buying support was quickly quashed this week. Whilst we may be heavily oversold on the market, there really is nothing to indicate a show of support.

London – comparatively a quiet week this week in London, as all eyes remain on New York for action.

 

GBP / USD The pound remains in a good position against the USD, and Euro  

 

Origins

 

Brazil – with New York constantly declining, differentials are firming up daily in Brazil – as producers begin to limit supply, holding out for better pricing.  We are now teetering on the edge of 140 – the minimum for Fairtrade pricing, and understandably producers are not happy!

 

SWD – Port Strikes once again in the US are adding to shipping woes, especially those looking forward to the latest Swiss Water Decaf coffees, which continue to face delays whilst the Unions grapple with pay (or lack thereof)

 

Jamaica – some new crop coffees have begun arriving, but the advent of the season has further compounded the supply shortage, and incredibly pricing continues to rise for this relatively rare, remarkably priced special coffee.

 

India – Differentials continue to rise as delays in the crop (due to longer than expected rains) mean exporters with shorts to fill are buying up anything and everything they can get their hands on! Now that they are slowly becoming covered, producers are reluctant to sell any more at lower levels to anyone else, even amidst the lack of interest from other buyers. Once again, market manipulators have damaged the smooth flow of coffee, and any trust producers had in the fragmented supply chain. Our very own Priscilla Daniel is currently in India to assess the crop, and visit our trusted suppliers.