Coffee Prices, Futures and Currency close levels:
|
|
Monday |
Tuesday |
Wednesday |
Thursday |
Friday |
|
NY Jul-13 c/lb |
closed |
126.45 |
127.60 |
125.85 |
127.05 |
|
Lon Jul-13 $/t |
closed |
1922 |
1890 |
1844 |
1893 |
|
£/$ |
1.5048 |
1.5048 |
1.5112 |
1.5214 |
1.5173 |
Futures Markets:
Arabica: The bulk of the volume traded in conjunction with spreads and now the market was sent into swaying drift. Further technical selling and possible some fresh Brazil hedging with a weaker real pushed through the patchy buying interest.
Robusta: Uncovered lots have increased purely based on speculative selling be it from the commercial or the non-commercial category, quite to what extent is yet to be unveiled.
Currency: The US economy expanded less than previously estimated in the first quarter despite the largest gain in consumer purchases since the end of 2010. The slowly weakening US$ helps the market reflect how low levels are at present.
Physical Markets:
Brazil: The real was weakened to levels last seen 6 months ago helping to compensate losses in the futures market. Rains are still tolerable but need to subside with the harvest progressing to avoid quality issues.
Colombia: Continued rainfall in most coffee areas has been positive for the main crop development. Similar news to that of Brazil with the exchange rate moving towards 1900 pesos to the dollar helping compensate for weak NYC, but replacement levels remain firm.
Ethiopia: FOB market stopped as buyers did not accept plus differentials for unwashed Arabica coffees – this is a common feature in the exchange as simply supply and demand is driving producers to push the price up.
Kenya: Weaker qualities dominating with fair demand for the reasonable grades of which much is unwashed coffee. Odd lots found good levels, but only for exporters who were short.
Indonesia: The dreaded rain is back in the coffee areas causing farmers to problems with drying their coffee. Local exporters have sold early this year for April/May shipments. The 2013/2014 crop is estimated to fall by 10% to 10.5 million bags.
India: Robusta continues to be expensive; there is no parity between buying and saleable differentials at present. The weather is cloudy and has started to rain in a few areas. The full monsoon will start from next week.
