Market Reports Blog / Market Reports / Weekly Market Report 22 to 26 October 2012

Weekly Market Report 22 to 26 October 2012

 

 

 

Futures Markets:

 

Arabica: The market resumed its downward path, sticking to the lower band range; the weakening differential has been the most consistent feature of coffee this year and has been the base of the speculative positioning in the market.

Robusta: The market fell throughout much of the week hitting a 7-week low due to origin selling and top producer Vietnam harvest picking up - this has resulted in speculators cutting net long positions.

Currency:  The pound remains in a positive position as the UK exited recession in Q3 with the strongest growth in five years as Olympic ticket sales and a rise in the services sector helped boost the economy

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-12 c/lb

164.50

160.85

159.80

161

157.75

Lon Nov-12 $/t

2058

            2035   

2039

2029

1996

£/$

1.6032

1.6000

1.5976

1.6068

1.6110

 

 

Physical Markets:

 

Brazil: Weather is expected to be dry for the next ten days which should benefit crop development. News that exporters are below sales expectations because internal prices are not allowing offers to look attractive.

Colombia: Coffee flow remains disappointing, as a result of internal pricing and delayed arrivals in some areas.

Kenya: The auctions are only active every fortnight, as trading remains very quiet – prices remain on similar levels.

Tanzania: The main share of coffee in this week’s auction came from the region of Mbeya which is situated in the south. News that farmers are holding back on their coffee release in hope that the market will rise, has been slowing down the processing at various dry mills.

Indonesia: Coffee premiums jumped and could strengthen again next week after the harvest ended for robusta.

Honduras: Exporters have been selling in good quantity in advance; this is similar to what has been seen in previous years. The outcome of last season was a surprise to most people as total output was 30% higher than expected.

Vietnam: Exports may account to 79,000 metric tonne this month, according to the Ministry of Agriculture and Rural Development.

India: Physical activity is still limited, only some leftover trades in Plantation coffees have been noted this week. New crop business has not yet started, the Arabica crop starts in the second half of November.