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Coffee Market Report 11th March to 15th March 2013

Coffee Prices, Futures and Currency close levels:






NY May-13 c/lb






Lon May-13 $/t













Futures Markets:


Arabica: The past few weeks have taken on the image of a small head and shoulders – slowly rising towards to the 145s but retracting when near to levels similar before creating shoulders. The market struggled to find any support finishing the week in a negative manner, as we plunge lower than the recent trading ranges of 140-145 into a new range of 135-140.

Robusta: After a quick flutter above the 2200s mid-week we soon found ourselves back down to the 2190s. This is not reflecting on the fundamentals as we continue to climb slowly but surely since December. The simple fact is that Robusta is now extremely sought after, and even though differentials are still high at origin people are still buying.

Currency: Bank of England governor Mervyn Kind assured the public that the Bank of England was not aiming to reduce the value of sterling, even thought that’s exactly what happened.


Physical Markets:


Brazil:  Most selling and buying ideas were mismatched and were hard to tie. There was still flexibility of some exporters as there was overseas interest and reportedly new crop spreads were also booked.

Colombia: The recent strike has resulted in the resignation of a long standing member of the national coffee committee who feels the government shifted the Federation into a closet and negotiated directly with the producers instead.

Indonesia: Fascinating week caused lower differentials for the main crop from July to September compared to Vietnam.

El Salvador: Exports fell 15.9% in February compared to the same month a year earlier, reaching 136,649 bags for the month, the country’s national coffee council said on Tuesday.

India: The release of coffee by farmers decreased, which is often seen at the end of the financial year at the end of March, as many big estates prefer to book their sales in the next financial year.

Kenya: The top price of the AA grade rose by $41 a bag at the last auction on Tuesday.

Ethiopia: Decreased volume of washed but increased sundried being offered at auction. Only in Addis is the weather sunny and windy – coffee growing regions are having nice conditions are all nice and all getting rain.

Uganda: Exports rose 34.5% year on year in February to 328,643 bags as a result of favourable weather and greater stock availability the UCDA mentioned on Tuesday.