Market Reports Blog / Market Reports / Coffee Market report 28th July 2014 to 1st August 2014

Coffee Market report 28th July 2014 to 1st August 2014

COFFEE MARKET NEWS 28th July – 1st August 2014

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Sep-14 c/lb

181.10

180.70

182.50

195.05

192.35

Lon Sep-14 $/t

2028

2034

2037

2104

2093

£/$

1.6984

1.6941

1.6918

1.6887

1.6831

 

Futures Markets:

Arabica: The week was divided in two parts: dull (Monday to Wednesday) and extremely volatile (Thursday to Friday). Not much happened during the first part couple cents per pound changed only, but then NYC ICE started going up to the 3 months highest point 207, but it melt the same day to 192.35, that shows high volatility during this day (16 cents/lb was the range between low and high on Friday).

Robusta: It seems that LIFFE followed the ICE, as the trend was quite similar of both markets; LIFFE got its life on Thursday when it has gone up by 67 $/mt to 2104 $/mt.

Currency: On the FX markets, the US dollar’s rally against Sterling continued as GBP/USD eased to a low of $1.6855, while EUR/USD traded in a tight range below the $1.3400 level.

Physical Markets:

Brazil: Brazil's coffee council said it was not surprised by the swift rise in arabica prices this week and reiterated its estimate for national crops of around 40 million bags for the next two years in a note on Friday. ICE arabica coffee futures jumped over 5 percent to a three-month high on Friday due to revived worries over drought damage in Brazil, the world's top grower. "The price reactions over the week are not surprising considering the intense impact of 75 days of Indian summer earlier this year," the Council wrote in a statement.

Honduras: exports from Honduras rose 52 percent in July compared with the same month last year, the country's national coffee institute IHCAFE said on Friday, as exporters seek to lock in stronger returns amid speculation that prices may fall in the near-term. Shipments totalled 349,450 60-kg bags in July, IHCAFE said. "July exports rose because of instability in the price of coffee in the international market and fears from Honduran exporters that prices will soon fall," said Salvador Melghem, vice president of the coffee farmers association AHPROCAFE.

Costa Rica: exports from Costa Rica slid 9.2 percent in July compared to the same month last year, the country's national coffee institute ICAFE said on Friday. Costa Rica, one of the region's smaller producers but known for its high-quality beans, exported 112,948 60-kg bags of coffee during the month.

Indonesia: Robusta coffee bean exports from Indonesia's main growing area in Sumatra fell 75 percent to 14,181 tonnes in July from a year earlier, government trade data showed this week. Indonesia shipped 55,709.32 tonnes of robusta in the same month a year earlier and 6,897.62 tonnes in June.

India: exports in October-July edged up 1.5 percent from a year ago to 263,379 tonnes, the state-run Coffee Board said on Friday, as a drop in Brazil's output boosted demand for the south Asian country's beans. Italy, Germany, Belgium and Turkey were key buyers of Indian coffee, the Board said. India, the world's sixth biggest coffee producer, exports three-quarters of its production.

Vietnam: In the staunchly competitive coffee industry, leading economists forecast Vietnam is set to become the world’s largest coffee exporter, providing the Southeast Asian nation can surmount its shortcomings, radio The Voice of Vietnam (VOV) reported. The Ministry of Agriculture and Rural Development (MARD) reports Vietnamese coffee exports in the seven months leading up to August jumped 26.9 percent in volume and 21.9 percent in value on-year. The country shipped a total of 1.12 million tonnes of coffee beans to foreign markets during the period grossing 2.31 billion USD in revenue at an average sales price of 2,043 USD/tonne, 4.84 percent lower than the previous year’s figure.