Market Reports Blog / Market Reports / Coffee Market Report 7th to 11th October 2013

Coffee Market Report 7th to 11th October 2013

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-13 c/lb.

114.50

115.05

115.25

114.40

116.70

Lon Nov-13 $/t

1709
1696

1722

1736

1733

£/$

1.6094

1.6082

1.5940

1.5965

1.5942

 

Futures Markets:

 

Arabica:  Like a game of Snakes and Ladders it takes a long time to climb up the board but one bad throw can see you back to the starting point. Speculators were driving the market up only to make a quick few cents. The end of the week gave us the highest settlement within the last five days. May-14 saw trades as high at 119.35 which we haven’t seen since mid-August.

Robusta: London saw reasonable support this week; it feels likely that we should test the 1750s sometime this week – but only time will tell.

 

 

Currency:  the US dollar was supported by hopes of a breakthrough in the US political deadlock. The US dollar made gains pushing EUR/USD to a low of $1.3487 while GBP/USD eased to $1.5912.

 

Physical Markets:

 

Brazil:  Local and export business remained to a minimum. Good flowering last week and more flowerings expected shortly – conditions are looking good.

 

Colombia: Optimal weather conditions remain, good flowering have taken place for the midcrop. Business taking place to all directions – buyers are trying to bid differentials even lower, but internal replacement remains stubborn.

Ethiopia: Stable prices as sundried demand still lingers. News that exporters last week mainly sold to Japan short therefore needing to cover their positions this week.

Uganda: Rather quiet, robusta season yet to kick off. Weather has been wet and cloudy so not ideal for ripening and drying

Tanzania: Levels remain steady where over 25,000 bags were on offer.  

Peru: The Roya impact seem to be about 25% for this season and we hear serious effects. Therefore,

official help from government side is organized in terms of fertilizer, pesticides, finance and training

courses for farmers.

PNG -New crop enquiries on the rise but exporters very cautious and would like to see the crop develop further.

 

AOB:

The best hope for a rise in arabica coffee prices may be a continued revival in values of robusta beans, a leading analyst said, forecasting that output in Colombia could recover to its highest for more than 20 years – Agrimoney, 2013.