Market Reports Blog / Market Reports / Coffee Market report 5th May to 9th May 2014

Coffee Market report 5th May to 9th May 2014

COFFEE MARKET NEWS 5th May – 9th May 2014

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Jul-14 c/lb

205.25

202.25

201.00

195.50

183.90

Lon Jul-14 $/t

-

2147

2145

2134

2093

£/$

1.6888

1.6983

1.6960

1.6932

1.6847

 

Futures Markets:

Arabica: futures tumbled 5.5 percent to a one-month low on Friday, after talk that Brazil's coffee crop may not have suffered too much damage from the drought.

Robusta: London has been finally dragged beneath 2100 by a very weak looking NY market. The outlook has turned from neutral to bearish with the close tonight pointing to spec selling first thing on Monday, the next support should be seen at 2066, 2050 then 2000. Origin will probably sell early although they are unlikely to chase the market too hard to the downside for now.

Currency: On the FX markets, the euro came under pressure following Draghi’s dovish comments with EUR/USD slipping to a low of $1.3831 while GBP/EUR rose to a high of €1.2243.

Physical Markets:

Brazil: exported 2.73 million 60-kg bags of green coffee in April, more than the upwardly revised 2.52 million bags shipped in March, the Council of Green Coffee Exporters said Thursday. Even with drought damaging the crop.

Peru: output in Peru could grew by 15 percent this year as farmers boost planting in a bid to cash in on prices that have risen on the back of a historic drought in Brazil, the agriculture ministry said on Friday. Output in Peru could reach about 300,000 tonnes this year, up from some 260,000 tonnes produced in last year's fungus-hit harvest, said Jorge Figueroa, a coffee specialist with the agriculture ministry. The ministry previously forecast a 7 percent increase for this year, expecting coffee-growing regions hurt by the roya fungus to start recuperating.

Colombia: Colombia produced 832,000 60-kg bags of arabica coffee in April, down 14 percent from the same month last year, the national growers' federation said on Wednesday, based on a revised year-ago figures, while exports jumped by a fifth to 824,000 bags. The farmer-funded federation gave no reason for April's decline or for the change in production and export figures for April 2013. No one at the federation could be reached on Wednesday evening for comment. Figures the federation originally reported for production and exports in April 2013 were much higher at 1,075,000 bags and 810,000 bags, respectively.

Kenya: The maximum price of Kenya's benchmark coffee grade went down by 10% per 50-kg bag at this week's auction from last week, the Nairobi Coffee Exchange said. The east African nation is a relatively small producer but its coffee is much sought after by global roasters to blend with coffee from other sources offering beans of a lower quality. Prices tend to fall later in the selling season once the best-quality beans have been sold.

Indonesia: coffee bean production is estimated at 700,000 tonnes this year, compared to last year's 650,000-700,000 tonnes, an industry group said on Wednesday. "Although this year's weather situation is drier than last year, I see there is still rain," said Irfan Anwar, chairman of the Indonesian Coffee Exporters and Industry Association. Indonesia's coffee consumption is expected to increase to 300,000 tonnes this year from 260,000 tonnes in 2013, he said.