Market Reports Blog / Market Reports / Coffee Market Report 3rd to 7th February 2014

Coffee Market Report 3rd to 7th February 2014

COFFEE MARKET NEWS 3rd February – 7th February 2014

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Mar-14 c/lb

135.95

136.25

143.10

135.75

135.70

Lon Mar-14 $/t

1867

1809

1857

1860

1776

£/$

1.6293

1.6324

1.6323

1.6328

1.6328

Futures Markets:

Arabica: After such an explosive week we intend to be looking at the past rather than the future. The NYC still looks impressive on the technical side despite the weather in Brazil.  Mid-week we saw the market rally over 7 cents after there was strong speculative buying recreating the largest climb since 2004.

Robusta: Robusta follows the drive of New York with the arbitrage providing selling. Differentials have driven over 13 cents wider with players struggling to cover short positions and the spec community moving to join the more aggressive move of New York releasing longs in London. 

Currency: On the FX markets, EUR/USD pushed to a 1-week high of $1.3619 while GBP/EUR slipped to a low of €1.1972. The Euro was disappointed that the ECB maintained interest rates at 0.25% with little hint of any change. The Euro traded to 2 week’s highs against the Dollar with inflation in the Euro zone is half the target of the Central Bank at 0.70%.

Physical Markets:

Brazil: The return of rains should ease stress on the coffee, soy, sugar and orange crops, which have been struggling with high temperatures and dry conditions since late December. Producers and analysts have begun to revise their expectations for the region's crops, however, which have suffered some irreversible losses to yields. If confirmed, the return of rains will likely also help stop a decline in hydroelectric reservoirs in the region that are at their lowest levels in nearly a decade. But senior Somar meteorologist, Marcio Custodio, said rainfall volumes could still disappoint.

Colombia: Colombia will produce 11.3 million 60-kg bags of coffee in 2014, a 3.6 percent increase over the 10.9 million bags produced last year, the chief of the farmer-funded National Coffee Growers' Federation said on Thursday. Output from the world's biggest producer of washed arabicas rebounded some 41 percent in 2013 over 2012 after a nationwide effort to replant with new fungus-resistant trees to combat roya or leaf rust that engulfed plantations from 2008 onwards.

Honduras: Coffee exports from Honduras fell 14.2 percent in January, national coffee institute IHCAFE said on Monday, pointing to the continued effects of a devastating coffee fungus and a rise in contraband coffee leaving the country. Honduras, Central America's top coffee producer, exported 548,795 60-kg bags in January, down from 639,669 bags during the same month last year, IHCAFE said.

Costa Rica: Coffee exports from Costa Rica fell 25.7 percent in January compared to the same month last year, the Central American country's national coffee institute ICAFE said on Monday. Costa Rica exported 101,802 60-kilogram bags in January, down sharply from the 136,991 60-kg bags exported in the same period last year.

Indonesia: Robusta coffee bean exports from Indonesia's main growing area in Sumatra rose 15 percent to 8,299.19 tonnes in January from a year earlier, government trade data showed on Monday. Indonesia shipped 7,210.93 tonnes of robusta in the same month a year earlier and 22,425.74 tonnes in December.

Papua New Guinea: The demand for all qualities are increasing from outside. Exporters are still not willing to offer before the arrival of the new crop from March/April onwards and cannot offer better differentials as well.