Materialism: buying things we don’t need with money we don’t have to impress people that don’t matter.
Coffee Prices, Futures and Currency close levels:
|
Monday |
Tuesday |
Wednesday |
Thursday |
Friday |
|
|
NY Sep-13 c/lb |
123.25 |
125.95 |
127.95 |
127.55 |
122.70 |
|
Lon Sep-13 $/t |
1904 |
1946 |
1950 |
1970 |
1968 |
|
£/$ |
1.5100 |
1.5111 |
1.5091 |
1.5162 |
1.5237 |
Futures Markets:
Arabica: The market acted like a flock of sheep. After hearing news that the weather in Brazil is much cooler than first thought technical buying moved the market higher from Monday to Thursday. Prices hit an eight-week high because of the weather, which pushed the specs into thinking there would be good odds for a possible frost in some areas of Sao Paulo and Minas Gerais.
Robusta: Short-term traders were quick to join in the market which followed the NYC. Despite volatility, volume to the upside was disappointing and with the market unable to break the psychological $2000 barrier, enthusiasm started to wane.
Currency: The £ strengthen against the US$ to one month highs of US$1.5384 during thin trading and on expectations of a strong UK GDP release on Thursday.
Physical Markets:
Brazil: Local market revived and exporters covering. But also some industry buyers stopped the wait and bought for immediate needs. Some rain expected followed by a cold from 23rd July – 4th August according to Somar.
Colombia: In Bucaramanga, mid-crop is over and main crop is still one month away. There was lots of talk that coffee farmers strike for Mid-August and government trying to convince them not to do it.
Nicaragua: Exports fell 1.9% in June compared to the same month a year earlier, reaching 212,988 60 kg bags in the month.
Costa Rica: HGA grades are finally being offered to the market but we are already seeing diffs 40%higher –a result of Roya.
India: Local roasters are quiet as they are not witnessing the much awaiting increase in demand during monsoon season. The central government and reserve bank of India continued with their strong bid to stabilize the rupee.
Peru: Roya has taken its toll already with a reduction of 30 -40% of the crop compared to the previous crop.
Uganda: July exports fell 3% to 300,00 60kg bags compared with the same month in 2012 due to unfavourable weather condition, the Uganda Coffee Development Authority (UCDA).
