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Coffee Market News 30th September to 4th October 2013

Coffee Prices, Futures and Currency close levels:

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-13 c/lb.

113.70

114.10

114.45

115.35

114.40

Lon Nov-13 $/t

1642
1636

1669

1703

1709

£/$

1.6196

1.6199

1.6210

1.6160

1.6036

 

Futures Markets:

 

Arabica:  Some would say a near to non-eventful week keeping the Dec in-between the range of 113.70 – 115.35. Origin are starting to hedge more willingly whilst the market continues to struggle with short coverings.

Robusta:  London had a rally built on the Certified decrease until that move collapsed on profit taking and lack of follow through buying.

 

 

Currency:  On the FX markets, after rising to a high of $1.6240, GBP/USD was unable to hold on to its gains as investors locked in profits, slipping to close London trading at $1.6153. Trouble in the US government still rumbles on.

 

 

Physical Markets:

 

Brazil:  Steady to stronger real. Underlying interest from end 2013 to mid-2014 is a good 2 to 3 cents away. Weathering watching remains a major pastime – shifting from cold weather to precipitation.

 

Colombia: Even though government has reached some agreements with farmers, last one reached yesterday with truckers, there are some regions where strike still is going on and government meeting with them today. Main crop due to arrive any moment, exporters are expected to start dealing in the next couple of weeks.

Guatemala: Farmers are still holding onto the current crop as there are not willing to release their coffee whilst the market remains at this level. New crop sales are confined to specialty buyers. Differentials already increasing as a result of the Roya.

Ethiopia: ECX trade activities is decreasing every week. Washed coffees are hard to come but , spot sundried European arrivals are confiscated immediately to cover short positions. Most exporters don’t have any price ideas for new crop as cherry picking is due to start in two weeks’ time, ready to start offering around mid-November.

Tanzania:

Uganda: Slightly softer Robusta diffs allowed for some business for last quarter shipments. Unwashed/washed Arabica slow internally, pricing not attractive enough for overseas buyers.

India: The rupee roller coaster ride continues to dominate the economic scene in India even as the currency recorded it lifetime low of Rs 68.58 against the US$. Half a million bags of Robusta cherry left in the market and are left in strong hangs.&nnbsp;