Market Reports Blog / Market Reports / Weekly Market Report 16 to 20 July 2012

Weekly Market Report 16 to 20 July 2012

Futures Markets:

Arabica : The Bullish market sentiment remains strong for another week. Fears that heavy and persistent rains in Brazil, has damaged the quality of the already delayed crop is fuelling speculator buying.  

Robusta : Prices climbed back to familiar territory again on the strength of speculative buying. Low certified stocks in Europe is keeping origin differentials very high at +plus differentials.

Currency :  Sterling is performing well against the Euro with the threat of Spain needing a further bailout. We are holding our own against the Dollar but a stronger Dollar puts pressure on the commodity markets.    

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Sep-12 c/lb

183.95

181.85

182.15

188.95

186.95

Lon Sep-12 $/t

2089

2083

2111

2192

2187

£/$

1.5630

1.5631

1.5646

1.5615

1.5616

 

Physical Markets:

 

Brazil : Price differentials for Brazilian beans eased in Europe's cash coffee market on sluggish demand as roasters were reluctant to step in because of high prices, traders said.

 

Nicaragua : Coffee exports from Nicaragua jumped 88.8 percent in June compared to the same month a year earlier, totaling 217,371 60-kg bags in the month. But Nicaragua's export agency Cetrex said Monday coffee exports through the first nine months of the 2011-12 harvesting season totaled 1.17 million bags, down 10.2 percent compared with the same nine-month period during the 2010-11 season. The spike in last month's exports reflects a recovery in coffee prices and the expectation by Nicaraguan exporters of favorable prices going forward

 

Kenya : The top price of Kenya's benchmark coffee grade AA rose at this week's sale to $331 per

50 kg bag from $325 at the previous auction, the Nairobi Coffee Exchange (NCE) said on Wednesday.

Honduras: Coffee exports from Honduras, Central America's top producer, are expected to reach nearly 5 million 60-kg bags for the current 2011/2012 harvesting season, up 29 percent over the previous cycle.

 

Indian : Coffee prices in India rose in the auction held on Thursday, helped by firm export demand,

auctioneer J. Thomas & Co said in a statement.  "Exporters were active on arabica plantation, arabica cherry

and robusta parchment premium grades on offer.

 

Indonesia /Vietnam : Purchases by roasters helped Indonesian Robustas trade at premiums to London futures despite the arrival of more beans from plantations, while buyers were put off purchasing from Vietnam due to the quality of beans there, dealers said on Thursday.  

India: The prices of robusta parchment coffee rose at this week's auction on strong demand from

exporters,  Robusta parchment coffee continued to receive good support from exporters.

 

Other news :  “Coffee is immoral” Iranian police shut down dozens of restaurants and coffee shops over the weekend, Iranian media reported, in a renewed crackdown on what the state sees as immoral and un-Islamic behaviour. Regular officers and members of the "morality police" raided 87 cafes and restaurants in a single district of the capital Tehran on Saturday.