COFFEE MARKET NEWS Week Ending: 14th Aug 2015
|
|
10th Aug |
11th Aug |
12th Aug |
13th Aug |
14th Aug |
|
NYC |
133.50 |
137.20 |
131.85 |
137.05 |
137.50 |
|
LIFFE |
1693 |
1725 |
1699 |
1704 |
1713 |
|
GBP / USD |
1.5593 |
1.5573 |
1.5640 |
1.5605 |
1.5641 |
Commentary
NYC: What a week! The market went up as quickly as Stuart Broad takes wickets. We saw a 12 cent rally; this was due to a number of people short covering their positions driving the market higher.
LIFFE: Robusta followed on the back of NY rally. If London is to make the more concerted move back above 1800 New York has to provide the inspiration and London has to attract new longs.
Currency: The US$ gained little traction after US producer prices hinted of inflation giving the FED a chance to raise rates after prices grew 0.2%, better than the forecasted 0.1%.
Origins
Brazil – At this stage in the season, in the main producing area Minais Gerais it is estimated that 60-70 % of the coffee has been harvested. This later harvest is due to lack of consistent rain. Due to 2 consecutive droughts, the screen size of the beans overall is smaller than usual. However, the quality is better than last year and more coffee has been produced. Exporters project the current crop to reach 47.28 million bags, up from 46.78 million bags last year.
The price of robusta coffee in Brazil reached its highest nominal price since 2001 due to strong demand abroad and the impact of the droughts.
El Salvador – Problems with Roya and a major fungal outbreak plagued last year’s crop but efforts that were made to combat these problems are seen to be paying off. Exports have bounced back strongly, rising 38.7 percent in July compared to the same month a year ago.
Peru – The harvest is progressing well due to consistent and favourable weather. The quality is very good and there is still a good amount of coffee available. However, some producing areas are already close to the end of their harvest.
Kenya – Prices are high at the auction and not much coffee is on offer. Exporters have had difficulties offering coffee with higher prices and smaller quantities available. 10,000 bags are on offer at next week’s auction and this weekly level should persist until the end of September. The quantity on offer will be low thereafter and shouldn’t pick up again until the first main crop auctions at the end of November.
