Market Reports Blog / Market Reports / Weekly Market Report 26 to 30 November 2012

Weekly Market Report 26 to 30 November 2012

 

Futures Markets:

 

Arabica: The ICE surged nearly 4% in mid-week, acting in a small bouncing motion after hitting a 2 ½  year low, as the dollar fell from its highs after U.S House Speak John Boehner, expressed optimism about avoiding a fiscal crisis. As the market was close to closing time on Friday an influx of investors selling triggered automatic sell orders - this caused the market to fall back down toward to low 150s once more.

Robusta: Steady new interest caused the market to make a gentle climb throughout the week, but slowed down on Friday, triggering a slight dip. Interest will need to be maintained if Robusta is to break free of the grasp of the 1900s.

Currency:  More good news for the US economy was announced on Thursday as the GDP growth rate for the third quarter was revised up. This was linked to companies rebuilding their stock levels and a jump in public spending. This is unlikely to be sustained into the final three months. British consumer confidence unexpectedly picked up to an 18-month high in November, increasing the value of the Pound.

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Mar-12 c/lb

148.90

149.15

154.85

156.40

150.60

Lon Jan-12 $/t

1854

            1911   

1935

1938

1914

£/$

1.6013

1.6023

1.6006

1.6012

1.6047

 

 

 

 

 

 

 

Physical Markets:

 

Brazil: Brazil’s largest coffee cooperative is predicting a 25% decrease in the South Eastern region it serves from 9.7m bags down to 7.3m next year.  This comes from a bumper crop this year and should be expected in the biennial cycle.

Colombia: An environmental insurance policy is launching to protect coffee plantations hit by climate change starting in January, which has damaged output in the world’s top producer of premium coffees

Kenya: The top price of Kenya’s benchmark grade AA coffee rose by $10 against the previous auction according to the Nairobi Coffee Exchange.

Tanzania: Supply of coffee at the Moshi exchange increased to 30,957 bags during last week’s trading session, up from the 28,497 bags of the previous auction, because of a significant rise in the overall average prices for both Mild Arabica and Robusta.

Indonesia: Premiums for Indonesian Robusta jumped to their highest since May-2012 this week as supply was over shadowed by high demand, ahead of the new crop.

India: Coffee prices in India continued to decline at this week’s auction on lack of buying by exporters. Coffee offered for auction at this time of the year is generally left over from the previous crop year and usually fetches lower prices due to inferior quality.

Mexico: The head of Amecafe - Mexico’s national coffee association confirmed on Tuesday the presence of coffee leaf rust in the country’s top coffee-producing state, Chiapas. The damage would take a couple of days to know the true extent of the outbreak on the current 2012/13 season.

Vietnam: Exports jump 55.6% equivalent to 110,000 tonnes compared to the same time a year earlier according to Vietnamese government. Farmers are attempted to slow sales down, anticipating prices to rise on reports that the crop this year will fall from a record high.