Market Reports Blog / Market Reports / Coffee Market report 3rd November 2014 to 7th November 2014

Coffee Market report 3rd November 2014 to 7th November 2014

COFFEE MARKET NEWS 3rd November – 7th November 2014

 

The global coffee market will be in deficit of 800,000 60-kg bags during the 2014/15 crop year, harmed by projections that arabica coffee from drought-stricken top-grower Brazil would outstrip supply by three million bags, an International Coffee Organization (ICO) official said Friday.

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-14 c/lb

185.85

188.20

186.25

183.75

182.40

Lon Jan-15 $/t

2073

2040

2026

2007

2019

£/$

1.5981

1.5991

1.5983

1.5846

1.5843

 

Futures Markets:

Arabica: the market started with a hop skip and a jump close to 190s on Tuesday, but that was the highest point that could reach. We continue to search for new support areas. News that some areas in Brazil are now over irrigated may fuel the market but may cause the volatile inter-day trading range to widen.

 

Robusta: After a week’s break from stalking the NYC, LIFFE started its sheep movement following Arabica again ~ with 25$/mt volatility between high and low during the day. The week closed with 54$/mt difference from Monday. Overall the week was quite dull with the trend looking down.

Currency: On the FX markets, the US dollar rallied strongly with EUR/USD slipping more than 1.5 cents to a 26-month low of $1.2363. Meanwhile, GBP/USD ranged from a high of $1.6001 to a low of $1.5822.

Physical Markets:

Brazil: exported 3.04 million 60-kg bags of green coffee in October compared with 2.90 million bags in the same month a year ago, the coffee exporters association Cecafe said in its monthly report on Friday. Arabica shipments reached 2.76 million bags last month, down from 2.80 million the year before in October, while robusta exports grew to 275,893 bags from 99,005 a year ago, Cecafe said.

Recent rains have spurred flowering in much of Brazil's main coffee growing region of southern Minas Gerais this week, local cooperatives said on Thursday. But that is not enough to alleviate farmers' concerns that the 2015 crop was irreparably damaged by a year of hot, dry weather before the rains returned last month.

Mexico: coffee farmers are being battered by a series of problems that will keep output depressed at current levels or reduce it further during the new season, national coffee association AMECAFE said on Tuesday. AMECAFE Director Cruz Jose Arguello said coffee exports fell sharply over the summer even in some of the country's major coffee-producing states like Veracruz, where yields were initially expected to grow.

Guatemala: exports from Guatemala, Central America's second biggest producer, slid 32 percent in October, the country's national coffee association, Anacafe, said on Monday, while Costa Rica's exports fell 10.5 percent during the same month.

Costa Rica: coffee exports fell 10.5 percent in October from the same month last year, the country's national coffee institute, ICAFE, said on Monday. Coffee shipments in October, the first month of the 2014/2015 harvesting season, totalled 28,615 60-kg bags.

Honduras: exports from Honduras, Central America's top producer, fell by nearly a fifth in October as exporters delayed shipments in hopes of better prices, industry officials said on Wednesday. Coffee exports in October, the first month of the 2014-15 harvesting season, totalled 24,413 60-kg bags, down 19.7 percent compared with the same month last year, according to data from national coffee institute IHCAFE.

Kenya: The top price of Kenya's benchmark grade AA coffee rose by 5% per 50-kg bag at auction this week from last week's sale, the Nairobi Coffee Exchange (NCE) said on Wednesday.

Tanzania: Average coffee prices in Tanzania rose at the weekly auction last week on the back of robust demand from exporters, regulator Tanzania Coffee Board (TCB) said on Tuesday.

Vietnam: the world's second-largest coffee producer after Brazil is expected to export between 120,000 tonnes and 150,000 tonnes (2-2.5 million bags) of the commodity this month, up at least 14 percent from last month, traders said on Tuesday.