Market Reports Blog / Market Reports / Coffee Market report 31st March to 4th April 2014

Coffee Market report 31st March to 4th April 2014

OFFEE MARKET NEWS 31st March – 4th April 2014

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY May-14 c/lb

177.90

175.25

172.70

174.60

185.00

Lon May-14 $/t

2094

2024

2020

2016

2085

£/$

1.6673

1.6638

1.6654

1.6589

1.6572

 

Futures Markets:

Arabica: Thursday’s inside day put a bit of pep back in NY’s step Friday as it left a 175’s gap and boosted through the 181 apex. This fashions a small double bottom from the past couple of weeks that should have a good chance at unlocking the mid band (185.1), in which case there would be a near term goal of 196 proposed and the chance to get back into the Feb mindset to attack 210.

Robusta: Similarly responding to a preceding inside day, London also inserted a gap across 2030 as it lunged back up towards the mid band (2100) and nearby 2108 apex Friday. Having seen the Mch dip contained at 1993, there is the implication that a correction has played out now but it will take a confirming thrust beyond 2108 to reassure that idea and open the taps for another run at 2260.

Currency: On the FX markets, Sterling eased following the services PMI services data with GBP/USD falling to $1.6568. Meanwhile, the dovish tone of the ECB press conference saw EUR/USD fall over 1 cent to a 5-week low of $1.3697.

Physical Markets:

Brazil: national coffee council on Friday said the country would produce between 40.1 million and 43.3 million 60-kilogram bags of coffee in 2014, taking into account drought earlier this year. The council, known as the CNC, forecast a crop of between 38.7 million and 43.6 million bags for the 2015 crop, based on its study done in conjunction with the Procafe Foundation.

Colombia: produced 828,000 60-kg bags of arabica coffee in March, up 34 percent from the same month last year, the national growers' federation said on Wednesday, a jump that reflects the crop's recovery from fungal roya disease. Exports rose by a similar 35 percent to 928,000 bags, the federation said. Colombia's coffee output is rebounding after a run of poor harvests caused by roya, or leaf rust fungus, and poor weather bringing a timely increase to supplies in a market roiled by severe drought damage this year to Brazil's crop - the world's largest.

Guatemala: exports from Guatemala rose 7 percent in March from the same month a year earlier, the national coffee organization Anacafe said on Wednesday. Guatemala, the region's second-biggest coffee producer, exported 410,915 60-kg bags last month.

Honduras: exports from Honduras, Central America's top producer, rose 13.3 percent in March compared with the same month last year, the national coffee institute IHCAFE said on Tuesday, while exports from Costa Rica also rose slightly. Honduras exported 747,028 60-kilogram bags in March, up from the 659,037 bags exported during the same month last cycle. That marked the first time in the 2013/14 season that a month's export total has come in higher than the same month in the previous year.

Kenya: The top price of Kenya's benchmark coffee grade went down 16% per 50 kg bag at this week's auction from last week, the Nairobi Coffee Exchange (NCE) said. A total of 23,780 bags were offered, with 8,943 sold. Last week 24,848 bags were offered, with 8,768 sold, NCE said in its report late on Tuesday.

Indonesia: Robusta coffee bean exports from Indonesia's main growing area in Sumatra fell 36 percent to 9,168.1 tonnes in March from a year earlier, government trade data showed on Tuesday. Indonesia shipped 14,336.9 tonnes of robusta in the same month a year earlier and 7,559 tonnes in February.