Market Reports Blog / Market Reports / Weekly Market Report 5 to 9 March 2012

Weekly Market Report 5 to 9 March 2012

Futures Markets:

Arabica : The NYC market continued its decline going under the 200 cts/level which confirms the bear flag pattern. The situation in Greece and Eurozone is still deteriorated a bit more which created a “panic” on the markets. Market traded lower as all other commodities lead by oil. CRB index is also going down.

Robusta : The market remained sideways as there was a nervousness amongst speculators sitting long and origin fearful of missing good price opportunities.

Currency :  US Dollar strengthened against euro and sterling as confidence about US economic recovery  and ongoing concerns about Greece saw some risk aversion.

 

Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY May-12 c/lb

204.10

193.05

188.60

189.40

186.20

Lon May-12 $/t

2003

1955

2031

2088

2050

£/$

1.5821

1.5735

1.5768

1.5807

1.5678

 

Physical Markets:

Brazil : Demand seemed sidelined as roasters appear to be covered which add pressure to the sellers. Differentials are a little bit more expensive that the previous week. In February, shipment fell to 1,91 million compared with 2.47 million last year, caused by the off-year harvest and also by the  highest average price in the last five years. About the weather, it is still dry and warm with temperature around 32 Celsius which will expected by giving helpful regular showers in the final weeks of the crop development.

Colombia : The business remains quite little as buyer and sellers doesn’t share  the same price ideas. The currency doesn’t help the local price. The weather is still good for the main crop flowering, already some areas have two flowering and some others are expecting to have another one but the crop is not unlike to be big.

Guatemala : One of our suppliers just finished this crop and it turned they were down 20% compared to last year due to the late and heavy rains. However, quality remains very good.

Kenya : During the Auction number 15 held on 6Th of March, 23,688 bags were on offer, levels went up with the falling terminal market. Quality offered remains very good; most of the volume traded was FAQ with some premium lots. Raining season is starting this month in the country which is expected near the normal but poorly distributed.

Tanzania : Next Auction will be held on 15th March. As it is almost the end of the season mainly lower qualities were still on offer. Weather is still warm and good for the crop.

Uganda : This is the end of the Robusta season and buyers waiting for the new crop with offers starting in May. In terms of weather, there was no drought this year which ensured good yields. In February, exports were 26% up compared to the same period last year.

Ethiopia : Prices remained bit high, producers are worried about their washed coffees not selling well. However, prices of unwashed are starting to come down.

Papa New Guinea: The recent low prices causing farmer to hold back the small volume of coffee they have left to sell.

Vietnam : Differential eased a bit due to the healthy Liffe Market. In the internal market, prices are unchanged. New regulations from October 2012 will be arranged. For every member of The Vietnam coffee and Cocoa Association would have to pay 2 US dollar for every ton of coffee exported, used for the insurance fund. The worry is that this regulation needs to be applied to all companies even the foreign in order to avoid unfair treatment.

Other :  US FDA regulators warned the maker of inhalable caffeine products “Aeroshot pure energy” over false or misleading and for contradictory statements using this products with alcohol, as caffeine is not normally inhaled into the lung and the safety of doing it has not been studied and effects are unknown.