Market Reports Blog / Market Reports / Weekly Market Report 10th to 14th September 2012

Weekly Market Report 10th to 14th September 2012

 

 

Futures Markets:

 

Arabica: The NYC saw a jump in the market as it broke out of its range that has noticeably been around the 164 mark for the past couple of weeks. The initial jump was one of the biggest since October last year as many people were covering their short positions.

Robusta: Liffe quickly followed the actions of the NYC by climbing close to the 2100 mark, a position which we have become accustomed to over the past couple of weeks.

Currency:  Dollar continued to weaken after news that the US economy seems to remain on a negative note. The quantitative easing means that the Fed will buy $40bn of agency mortgage-backed securities a month, and keep rates at rock bottom levels until mid 2015 - these plans are likely to remain in place until the labour market/economy improves.

 

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-12 c/lb

158.20

177.55

177.50

178.85

181.10

Lon Nov-12 $/t

2012

            2066   

2073

2082

2083

£/$

1.6003

1.6016

1.6084

1.6114

1.6187

 

 

 

 

 

 

Physical Markets:

 

Brazil : Local markets have seen brisk activity with widespread selling interest from producers and cooperatives offering larger volumes – replenishing various buyers depleted stocks. Producers have been willing to sell because of the jump in the market resulting in spot and deferred delivery orders.

Colombia: There was a 21% increase in August a sign that the harvest is recovering. Although there is an increase this does not mean that the output will meet the coffee growers federation target for 2012.

El Salvador: Exports fell 37% compared to this time last year due to lower quantities caused by strong rains.

Kenya: The Nairobi auction remains volatile as the quality remains uncertain whilst volumes keep on increasing.

Tanzania: Arabica prices rose during this week’s auction in Moshi, this was a result of strong demand and a cause of the jump in the NYC.

Uganda: Exports fell by 25% in August to 233,451 bags this was below what the country had projected, as production has downward slide in some growing regions.

Nicaragua: There was a rise in exports of 123.5% during August; the national coffee council states that this is linked to other countries exporting lower volumes.

Honduras: An outbreak of leaf rust which is known as one of the most vicious coffee diseases could dent a large amount of the coming harvest. Leaf rust is caused by a fungus called HemileiaVastatrix - spores are spread by wind and rain which are most prominent in low altitude with a humid rainy climate.

Mexico: Exports rose 60.1% in August compared to a year earlier.