Market Reports Blog / Market Reports / Weekly Market Report 3rd to 7th September 2012

Weekly Market Report 3rd to 7th September 2012

 

Futures Markets:

 

Arabica : Following the positive figures of the Brazilian 2012 coffee output, the market continued its downward trajectory for the best part of the week. Before a strong finish on Friday.

Robusta : Speculative long liquidation caused the market to match the NYC, as the market fell from Monday to Thursday, recovering at the end of the week.

Currency :  The weakening of the dollar continues as poor economic figures remain. There is a high possibility that the US Federal Reserve will announce a third tranche of Quantitative Easing next week.

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-12 c/lb

164.75(closed)

165.30

165.30

158.20

163.05

Lon Nov-12 $/t

2094

2081

2038

2012

2049

£/$

1.5905

1.5855

1.5904

1.5956

1.6003

 

 

 

 

 

 

 

Physical Markets:

 

Brazil : Revised crop reports from Brazil, indicates that the countries 2012 coffee output exceeded its already very high estimate.

El Salvador: Harvest is predicted to amount 1.45 million bags which compared to the current year is a 18.9% increase.

Kenya :  Ethnic clashes are still on-going which have been sparked by two groups differences over access to land and water close to the coast. There is no indication that this is delaying shipments from Mombassa.

Indonesia : Government trade data provided positive exports data, as there was an increase of 30%, compared to the previous year,

India: Exports fall 6.88% on year to 306,238 tonnes.

Vietnam : Exports could fall to between 60,000 to 90,000 tonnes, from an estimated 120,000 tonnes loaded in August -  reflecting on the thinning domestic stocks.

Guatemala: The rise in exports brings a brighter outlook on Guatemala’s exports; nevertheless this is mostly likely a result of the slow exports during April, May and June.

Nicaragua: 3000 people are being evacuated near areas that are close to the San Cristobal Volcano. Authorities say they expect more gas emission and sporadic explosions.

Costa Rica: A powerful earthquake in the north-west close to the capital San Jose. Early indications is that there is no lasting infrastructure damage .The coffee exports rose 136.9% in August compared to the same month last year reaching 81268 bags.

Honduras: The increase in August exports relates to positive 2011/12 harvest output that has exceeded even the most optimistic expectations.

 

 

AOB: About 2,000 bags of certified arabica coffee stored near New Orleans sustained water damage from Hurricane Isaac, which stormed through the Gulf Coast region last week, ICE Futures U.S. said in a release on Tuesday. This amount of coffee represents 0.1 percent of the total ICE certified arabica stocks held in the United States and Europe.