Market Reports Blog / Market Reports / Weekly Market Report 13 to 17 August 2012

Weekly Market Report 13 to 17 August 2012

 

 

Futures Markets:

Arabica: The NYC continued its downward spiral to below 160c/lb briefly making an appearance before acting like a yoyo and rising back above the 160 mark. This week includes the expiry of September options with also the presence of a strong US dollar consequently meaning volatility.

Robusta: There was large open interest during Wednesday, Thursday and is now trading below 2100 for September. Speculative buying appears to be a continued occurrence of long liquidation.

Currency: US Dollar remained strong last week after positive news that U.S economic data is looking optimistic whilst investors are hoping that the ECB provides economic stimulus to debt burdened Italy and Spain.

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Sep-12 c/lb

      164.10

163.05

161.90

158.85

160.30

Lon Sep-12 $/t

       2130

2130

2049

2064

2063

£/$

1.5666

1.5705

1.5661

1.5737

15707

 

 

 

 

 

 

 

Physical Markets:

 

Brazil: Some better qualities are coming to the market as they reach the middle period of their 2012/13 harvest, easing people’s fears that the wet weather would damage the crop.

Colombia: Production soared 26% in July, an indication that crops are recovering after a slump output caused by the heavy rain.

Nicaragua: Exports rose by 52.2% in July compared to the previous year as futures contracts are being settled and producers are selling larger quantities of coffees.

Uganda: Coffee exports dropped against the previous year after farmers are holding onto their crop in hope that prices would rise later.

Indonesia: A shortage of vessels is causing delayed shipments of more than 12,000 tonnes from major indonesian export ports and more disruptuions are forecasting as the harvest gains momentum.

India: Prices of arabica rose at auctions held on Thursday.

Vietnam: Robusta exports fell 18% to 114,000 tonnes Vietnam, customs stated that this is much less than expected.

AOB: Three quarters of the population of Totnes (a small town in Devon) signed an anti-coffee chain store petition last week and pledged to boycott the new branch. The town has a population of less than 8000 but still boasts 41 places to drink coffee.