Market Reports Blog / Market Reports / Weekly Market Report 1 to 5 October 2012

Weekly Market Report 1 to 5 October 2012

 

 

Futures Markets:

 

Arabica : The first half of the week appeared to be a complete contrast to the latter. Monday through to Wednesday, saw the market trade good volumes, providing a positive print for the three days. The latter end saw the market fall below the 168 mark because of long liquidation as weather concerns in Brazil eased.

Robusta : The Liffe market had some technical difficulties as it crashed three times, which halted any trading for long periods. Robusta moved within the range only fluctuating when the market opened after these difficulties.

Currency : The Dollar showed signs of recovery but weakened to a level which the greenback has been most comfortable at. The Dollar looks to be on a more positive forecast as the Federal Chairman suggested that the initial $40bn stimulus package could be stepped up if US economic indicators warranted it.

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-12 c/lb

173.50

183.65

181.05

175.05

168.10

Lon Nov-12 $/t

2179

2200

2180

2152

2095

£/$

1.6141

1.6153

1.6102

1.6105

1.6178

 

 

 

 

 

 

Physical Markets:

 

Brazil : News from Brazil suggests that exports for last month were less than 2.4 million bags as producers are holding back beans. Flowering has appeared on some of the crop in the South Minas area (south east) which is the largest Arabica-producing state – this is likely to cover 40 percent of the trees’ potential.

Costa Rica: Exports rose 16.1% to 1.4 million bags in the 11/12 period which came to a close last month. An increase was a result of lower quantity of bags being used for internal consumption. The main harvest runs from September through to December – depending on weather and other factors.

Kenya: Prices of the top grade rose as amount sold dropped, this is a simple supply and demand, when there is lower supply the price on most cases increases due to price elasticity.

Tanzania: A complete contrast to Kenya,as prices fell due to higher supply. Compared the week before, the auction sold 29,878 bags of 60kg, to increase to 39,211. Traders at the auction in Moshi stated that they thought that prices would remain firm due to a high level of interest.

India: Exports fell 8.6% from this time last year as there seems to be a lower demand for arabica

Indonesia: Indonesian coffee roasters were willing to buy local beans this week after global prices cut differentials.

Sumatra: Exports rose 77% from a year earlier; exporters are still pushing for bigger vessels to ship out of Panjang which is the main export port, 90% of the crop has been harvested and many export warehouses are full because of the vessel situation.

Vietnam: October exports could range between 50,000 to 75,000 against the estimated 75,000 bags that were shipped in September - harvest is predicted to increase later this month. News from origin states that the country needs to harvest at least 26 million bags in the season to ensure that supplies of the variety meet demand.

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