Market Reports Blog / Market Reports / Coffee Market report 6th October 2014 to 10th October 2014

Coffee Market report 6th October 2014 to 10th October 2014

COFFEE MARKET NEWS 6th October – 10th October 2014

 

Coffee futures surged to a 32-month high as persistent drought curbs harvest prospects in Brazil, increasing the odds for higher retail prices

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-14 c/lb

220.80

216.35

214.45

221.65

220.40

Lon Nov-14 $/t

2165

2176

2187

2151

2159

£/$

1.6049

1.6079

1.6065

1.6161

1.6088

 

Futures Markets:

Arabica: It only took the market 1 minute to jump 10c/lb higher on Monday, setting the volatile trend that continued throughout the week. Settlement levels chopped and changed all week leaving people guessing which direction the market will choose to follow.

Robusta: the market was a bit dull this week, not much volatility at all. The settlement at the end of the week was only 6$/mt lower than it was at the beginning of the week. Vietnam stays in good shape leaving the market in a comfortable position in comparison to ICE.

Currency: On the FX markets, the US dollar continued to slide as markets viewed the Fed meeting minutes as more dovish than expected. GBP/USD pushed to a high of $1.6226 while EUR/USD rose to a 2-week high of $1.2791.

Physical Markets:

Brazil: exported 2.63 million 60-kg bags of green coffee in September, a 9.6 percent increase on the same period last year, the Council of Green Coffee Exporters (Cecafe) said on Wednesday. Shipments in September were slightly lower than in August when Brazil exported 2.77 million bags.

Colombia: produced 912,000 60-kg bags of arabica coffee in September, an increase of 6 percent over the same month in 2013 as production rebounds after a run of poor harvests hit by disease and bad weather, the Coffee Growers' Federation said on Monday. Exports of the washed, mild arabica coffee rose in the month to 830,000 bags, up 23 percent compared with September of last year.

Kenya: The maximum price of Kenya's top grade AA coffee rose by 9% per 50 kg bag at this week's auction on Tuesday from last week's sale, the Nairobi Coffee Exchange said.

Tanzania: arabica coffee prices rose at auction last week on the back of higher New York markets, the regulator Tanzania Coffee Board (TCB) said on Tuesday. Tanzania, Africa's fourth-largest coffee producer after Ethiopia, Uganda and Ivory Coast, produces mainly arabica and some robusta coffee. Prices of its arabica normally track the New York market while those of robusta take their cue from London.

Indonesia: Nus Nuzulia said that with the surging prices, she was upbeat the value of Indonesia's coffee exports would increase by around 10 percent to US$1.3 billion from $1.17 billion last year. "We will benefit from the crop failure experienced by Brazilian coffee growers as their markets are switching to our coffee," she said at the 29th Trade Expo Indonesia.

Vietnam: the world's largest robusta coffee producer, is projected to export 100,000 tonnes (1.67 million 60-kg bags) of the commodity this month, similar to the shipment in September, traders said on Tuesday.