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Coffee Market report 14th April to 18th April 2014

OFFEE MARKET NEWS 14th April – 18th April 2014

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY May-14 c/lb

204.85

192.15

185.95

201.20

Closed

Lon May-14 $/t

2132

2121

2064

2118

Closed

£/$

1.6724

1.6724

1.6793

1.6785

Closed

 

Futures Markets:

Arabica: NYC market was incredibly volatile throughout the week leading up to Easter, with daily ranges of over 15 cents. Market pushed lower for the first half of the week only to regain all of its losses in a single day on Thursday. We look set for another exiting week ahead, as direction is anyone’s guess.

Robusta: London held reasonable well against a disintegrating NY market, but this was to be expected after LIFFE failed to match the velocity of the ‘C’ on the upside action. The arabica narrowed dramatically on Wednesday into the low 90’s after exceeding 110 cents/lb Tuesday. Although origin selling is likely to tail off substantially as we are far below 2150, recent fund longs will be anxiously looking at the market level tomorrow. A lower opening may force them into liquidation mode with 2050 and 2010 the next target levels. It will be interesting to see if industry find those levels attractive.

Currency: On the FX markets, Sterling was boosted by the better than expected UK employment data with GBP/EUR hitting a 6-week high of €1.2165 while GBP/USD rose over 1 cent to a high of $1.6818.

Physical Markets:

Brazil: The first coffee to be harvested in Brazil's Minas Gerais state suggests drought earlier this year caused losses beyond the 30 percent initially expected, Cooxupe, the world's largest coffee cooperative, said. Too little coffee has been collected to estimate the percentage of harvest completed in Brazil's main coffee-producing state, Cooxupe's president, Carlos Paulino da Costa, told Reuters in an interview late on Tuesday. "The harvest is just starting and losses are above what we could have imagined," he said. "Apparently losses in the south of Minas will be above 30 percent, but I am not able to say exactly how much they will be," Paulino da Costa said.

Colombia: growers of coffee and other crops plan to stage protests from April 28 to demand that the government implement promised farming reforms, one of the organizers said on Wednesday, but the action will not disrupt the coffee harvest. Colombian farmers say the government has failed to intervene to lower fertilizer prices, and has not implemented the partial debt relief they say they were promised. In the coffee sector, growers want the government to prohibit the import of cheaper produce from Ecuador and Peru to boost the price of local beans.

Kenya: Coffee flow in Kenya is slowly coming to an end, as the main crop availability dies out. Next week’s auction should be the penultimate of the current crop, before breaking for an extended summer break (usually 6-8 weeks. Coffees from Nyeri are slowly trickling through, even amidst the difficulties seen this season in this region. Logistically, Kenya continues to exhibit problems, as availability of Food Grade containers elude the industry, delaying shipments out of Mombasa. 

Ethiopia: Prices remain erratic and very firm as exporters struggle to make sense of the volatile NYC market. Certified coffees continue in short supply and trade at a high premium over conventional. Reports of defaults are increasing adding to roasters woes.