Market Reports Blog / Market Reports / Weekly Market Report 14 to 18 January 2013

Weekly Market Report 14 to 18 January 2013

Futures Markets:

Arabica: The market enjoyed positive gains throughout the week as prices moved to three week highs. Aggressive funds were seen to be covering more short positions within the vacuum created by origins that are still long and industry fairly well covered out (at least nearby).  

Robusta: London managed to trade to its highest level since the beginning of November last year, this was aided by another short covering exercise with fresh long positions. The continued high prices that Robusta’s are still commanding may have an effect on conventional Arabica’s to the upside as the arbitrage gets closer.

Currency:  Friday’s latest UK retail sales report put Sterling under renewed pressure.

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Mar-13 c/lb

153.30

152.50

153.00

155.30

156.30

Lon Mar-13 $/t

1971

            1953

1969

1978

1976

£/$

1.6122

1.6079

1.6009

1.6014

1.5947

 

 

 

 

 

 

 

Note: 21/01/13 - NY is shut for Martin Luther King day

Physical Markets:

Brazil: Long awaited rains have arrived after weeks of dry weather; the moisture will help the beans develop to a more desirable, yield-boosting size.

Colombia: The coffee flow from the main crop is slowly slightly in central regions, although some producers are still holding onto their crop in anticipation that the levels will rise. A couple of cents differs between buyers and a seller, the final production figures was 7.8 million bags for 2012.

El Salvador: Exports fell by 8.7% in December compared to the same month a year earlier reaching 74,993 bags in the month.

Kenya: Exports are expected to dip marginally in the 2012/13 due to lower international prices and lower volumes.

Tanzania: Producers seem unwilling to sell as they await for the NY to rise higher. Weather has been good although showers observed through the country are quite unusual and can cause harm to the crop.

India: Harvesting is still on schedule and weather working along positive expectations. Prices rose at last week’s auction on buying by local traders.

Nicaragua: Exports rose by 16.2% in December compared with the same month a year earlier reaching 60,576 bags in the month according to the country’s export association.

Honduras: Some exports still covering shorts at very high internal prices. Particular producing regions are now supplying increasing quantities so that prices slowly start to decrease.

El Salvador: Exports fell by 8.7% in December compared to the same month a year earlier reaching 74,993 bags in the month according to the country’s national coffee council CSC.