Market Reports Blog / Market Reports / Weekly Market report 18th to 22nd November 2013

Weekly Market report 18th to 22nd November 2013

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Mar-14 c/lb

109.30

108.55

110.20

111.40

107.10

Lon Jan-14 $/t

1566

1563

1579

1599

1576

£/$

1.6108

1.6117

1.6128

1.6152

1.6206

 

Futures Markets:

 

Arabica:  The coffee market retesting the highs which then elected stops. Out right volumes were reasonable and were certainly dominated by speculative activity. A rally in the markets are reasons for short coverings, following news that Brazils agricultural ministry has announced new measures to support its coffee producers as coffees prices remain ‘stubbornly near four-year lows’.

Robusta:   The market is as jumpy as a long tailed cat in a room of rocking chairs. The last week has seen the market jump 12% virtually in a straight line. The 1600 mark on Jan seems to the point where origin are content to put in some decent size selling, and it seems as though the recent long is taking some money off the table as well.

Currency:  On the FX markets, GBP/USD rose close to a 4 week high hitting $1.6226 before easing. The better than expected German data pushed the EUR/USD back above the $1.35 level while the GBP/EUR dipped below €1.20.

 

 

Physical Markets:

Brazil: Brazil will likely suspend debt payments being made by its struggling coffee producers as prices for the commodity remain near seven-year lows, the agriculture ministry said on Friday.

Nicaragua: Coffee exports from Nicaragua fell 78.4 percent in October compared to the same month a year earlier, reaching 39,775 60-kg bags in the month, the country's exports association Cetrex said on Tuesday. Nicaragua expects coffee output during the 2013/2014 season to drop by about 20 percent from the previous season due in large part to damage caused by the tree-killing fungus roya, totalling between 1.2 million and 1.3 million 60-kg bags.

El Salvador: Coffee exports from El Salvador rose 3.9 percent from a year ago to 37,487 60-kg bags in October, the country's national coffee association CSC said on Wednesday. October is the first month of the new 2013/2014 harvesting season.

Kenya: The top price of Kenya's benchmark coffee at auction fell by $21 per 50kg compared to the last sale two weeks ago, the Nairobi Coffee Exchange (NCE) said on Wednesday. At the previous auction on Nov. 5, 14,828 bags of coffee were offered, with 2,921 bags sold at an average price of $173.34, fetching $619,615.

Ethiopia: The change of cherry prices in the interior from former 8 to now 6.5 Birr created some interest. First offers for Washed coffees found some good interest whereas ECX price remain unchanged high 880 Birr and buying ideas are around 670 Birr. Unwashed levels are still beyond good and evil. Talk of the town: The dream to go to Brazil is gone.

Papua New Guinea: Very limited arrivals in Lae. Exporters are concentrated to cover open commitments. Fly crop is not yet on offer but in the focus of some traders.

Colombia: Colombian coffee farmers are on track to harvest their biggest crop in six years, and have attracted the attention of U.S. roasters by cutting the premium for some of their beans by more than 40 percent over the past six months. Colombia is expected to produce roughly 11 million 60-kg bags of coffee this year, after five years of lower yields due to heavy rains, an outbreak of a crop fungal disease called "roya" and a tree renovation programme.