Coffee Market report 10th November 2014 to 14th November 2014

COFFEE MARKET NEWS 10^th November – 14^th November 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: After a period of subdued trading and a negative trend, the market found some positivity climbing back up the 190s. There wasn’t much volatility as we have seen in recent weeks, with daily ranges being a ‘measly’ 2-4 c/lb, except Wednesday when it was the dullest day of the week. Overall, difference between Monday and Friday was about 11c/lb.

Robusta: Early origin hedging negated a positive week for Liffe. We struggled to see any further momentum past the 2087 due to decent hedging volume from Vietnam.  Funds retain most of their long position and industry was seen buying, we may struggle to break the 2100 mark unless there is another negative origin report.

Currency: On the FX markets, Sterling weakened against the US dollar following the RICS report which saw GBP/USD hit a low of $1.5692. Renewed speculation on an early election by Japanese Prime Minister Abe drove USD/JPY to a fresh 7-year high of JPY 116.38.

Physical Markets:

Brazil: production in the world's biggest producer Brazil will fall slightly in the 2015/16 crop year, following erratic flowering and low moisture levels after a drought, a trader at Brazilian exporter Comexim said this week. Brazil could produce 44 million to 47 million 60-kg bags of coffee next year, said Comexim's John Wolthers, speaking at the Sintercafe conference in San Jose, Costa Rica on Thursday. Wolthers estimated arabica production would account for 28 million to 31 million bags of the upcoming crop. Brazil’s official estimate from September is 48.8 million bags versus 44.1 million bags in the current 2014/15 crop year.

Kenya: The top price of Kenya's benchmark grade AA coffee dipped by 1% per 50-kg bag at auction this week from last week's sale, the Nairobi Coffee Exchange (NCE) said on Tuesday. The east African nation is a fairly small producer of coffee but its quality beans are used by roasters to blend with beans from other nations.

Tanzania: Average coffee prices in Tanzania, Africa's fourth-biggest producer, edged lower at auction last week in line with a slowdown in demand at New York and London markets, the regulator Tanzania Coffee Board (TCB) said on Wednesday. The east African nation, which ranks behind Ethiopia, Uganda and Ivory Coast in output, produces mainly arabica and some robusta coffee.

India: coffee prices eased at last week's auction on sluggish demand, even though sellers were seeking higher prices. In the auction, 237,996 kg coffee was on offer, including 97,104 kg of arabica and 140,892 of robusta. About 43,000 kg was sold.

Vietnam: the world's largest robusta producer, exported 95,800 tonnes (1.60 million 60-kg bags) of coffee in October, down 1.6 percent from the previous month, Vietnam customs said on Friday. The volume is slightly below traders' forecasts of 100,000 tonnes and down from the government's initial estimate of 105,000 tonnes. In October, the first month of Vietnam's new 2014/2015 crop year, most of the exported beans came from the previous season as fresh beans only start arriving in ports in November.