Market Reports Blog / Market Reports / Weekly Market Report 17th to 21st September 2012

Weekly Market Report 17th to 21st September 2012

 

Futures Markets:

 

Arabica: The market touched a seven week high as there were talks of investor’s short coverings and producer selling from the new Brazil crop. The month change over occurred on Thursday, which means that December takes 1st positions and March takes 2nd

Robusta: Speculators cut net long positions by 6,781 to 15,196 lots. This caused the market to create a crater mid-week correcting itself by the weeks end. The main flow of selling appeared to be generated from the managed money sector although there was evidence of rolled contracts into November. The market has become slightly stagnated in recent periods as fresh involvement is needed to gather pace higher than 2100 or force the issue below the 2000 mark.

Currency: The Dollar continues to weaken as Sterling hit a near 13-month high. The strong performance of the pound could be due to the better than first thought UK borrowing data.

 

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-12 c/lb

175.65

177.50

174.40

168.60

168.60

Lon Nov-12 $/t

2064

2024   

2017

2041

2083

£/$

1.6219

1.6231

1.6263

1.6169

1.6239

 

 

 

 

 

 

Physical Markets:

 

Brazil:  Coffee prices dropped back down to normality of recent weeks after news from origin that higher supplies were expected.

Kenya: The benchmark AA grade increased in price during this week’s auction. The performance remained flat as concerns over quality remained and traders cited knocks in the euro zone gave a knock on effect.

Tanzania: Prices fell at this week’s auction, following the actions of the NYC. The quality remains promising whilst demand has been static.

Vietnam: Exports fell 10% to 102,664 metric tons in August from a month earlier.

Honduras: No news whether the coffee leaf rust outbreak might affect the quantity and quality of the coming harvest.

Mexico: Harvest is due to start in October which is predicted to see a rise in production of 20%.

India: Prices rose at auction on Thursday, caused by buying by local traders whilst a large proportion of exporters stayed clear of the market.