Market Reports Blog / Market Reports / Weekly Market Report 27 to 31 August 2012

Weekly Market Report 27 to 31 August 2012

 

 

 

Futures Markets:

 

Arabica : The market jumped up to highs of 167.95 after finishing the previous week around 162 that may be a result of some speculative buying, at the end of the week the market returned back to a similar level of 164 where it is finding support.

The quick jump could be a cause of speculation of Hurricane Isaac causing damage to coffee in export warehouses.

Robusta : The Liffe had a long weekend, opening for the week on Tuesday and continued its meandering journey towards high the 2070s.

Currency : The dollar continued to gradually weaken -  this could be due to a larger amount of Americans than forecasted filing for unemployment benefits this week -  an indication of  a slow economic recovery.

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-12 c/lb

164.50

167.95

166.65

163.40

164.75

Lon Nov-12 $/t

Closed

2072

2070

2070

2077

£/$

1.5771

1.5812

1.5834

1.5777

1.5859

 

 

 

 

 

 

Physical Markets:

 

Brazil : As a result of negative speculation on the Brazil crop, differentials were expensive, causing problems for buyers and sellers as prices differed between 4-5 cent -  a level too big to be solved by negotiations.

Colombia : Harvest seems to be on course following several years of disappointment. The main crop is still a couple of weeks away, and exports are forecasted to increase due to popular demand.

Congo: Rebels in the North Kivu province dragged the country back into war which could cause negative externalities with the already fragile relations between neighbours – Rwanda, as allegations state that the rebels are receiving support from Kigali Military officials (Kigali is the capital of Rwanda).

Kenya : Prices fell during the Nairobi auction due to poor demand but high supply. It has been reported after the death of a religious figure, riots have broken out in Mombasa - this could bring the country to a halt.

Ethiopia: The Ethiopian Prime Minister Meles Zenawi, who came to power in 1991 bringing growth and development to Ethiopia during his time in office, has unfortunately died.

Tanzania : Arabica coffee prices rose at auction this week, following the trend of the NYC and the demand is expected to remain high as a result of demand according to traders. On average 20,000 bags of coffee are supplied to the weekly auctions but recently an increase of up to 30,000 bags has been noticed in origin.

Indonesia : Robusta exports rose 30% to 23,938.38 tonnes against the previous year as stocks levels decrease.

India: Coffee exports fell 6.88%, which is equivalent to $52.51 million in the 11 month of the coffee year that started in October.

Vietnam : Exports soared to 2 million tonnes of coffee during August, 189% higher than the previous year.

 

Other:

Thousands of bags remained unscathed from Hurricane Isaac that were stored in coffee warehouses in New Orleans.