Market Reports Blog / Market Reports / Coffee Market Report 29th April to 3rd May 2013

Coffee Market Report 29th April to 3rd May 2013

 

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Jul-13 c/lb

133.95

135.10

134.70

139.45

140.30

Lon Jul-13 $/t

2010

2007

1999

2020

2020

£/$

      1.5505

1.5530

1.5583

1.5534

1.5556

 

 

Futures Markets:

 

Arabica: A weekly trading pattern/cycle has emerged over the last few weeks, buying through the week only to sell the market the week after – until a new range is found that is. By Friday, on fairly small traded volumes prices have meandered gently to be nearly seven cents higher than Monday. Will there be any solid foundations to these levels only time will tell but they do not look to be made on concrete that’s for sure. Buy on the lows especially as currency offers another incentive.

  

Robusta: Little volume was traded on London this week, talk of a price breakout never really materialised although the “talk” is ongoing.  An interesting report from the Vietnamese government stating that “foreign” coffee companies, would be banned from purchasing directly from farmers/estates and would have to purchase through local traders.

How that would have an effect on prices is still to be quantified, 1st impressions are that prices would go up but the breaking of monopolies may have the reverse effect. 

 

Currency:  Sterling held on to its well fought gains over the week and is performing fairly well.

 

 

Physical Markets:

 

Brazil: There is more interest in enquiries for new crop positions without much selling and current crop business where some sellers are a little more forthcoming.

Colombia: Midcrop slowly coming to an end. Weather for the development of main crop is favouring

India: Arrivals of both Arabica and Robusta have slowed down drastically. Producers are not selling at current levels causing replacement levels to rise.

Ethiopia: The Ice performance gave some big capabilities for good volume trades in Addis. Some officials are pushing the ECX to take action on suppliers to reduce speculation time to 20 days.

Tanzania: A somewhat down-beat auction seeing as it was the final auction of the season.

Kenya: Auction 23 saw levels ease across all grades. A large majority of bids were well below reserve prices, with good quality still available, just not enough excitement

Indonesia: Weather conditions are creating a problem with drying coffee in time for May shipments.