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Coffee Market report 14th September 2015 to 18th September 2015

COFFEE MARKET NEWS Week Ending: 18th Sep 2015


15th Sep

16th Sep

17th Sep
























No change…

After months of heated debate within the market and the media, the much anticipated decision by the Federal Reserve officials was to leave interest rates unchanged on Thursday.


Coffee prices continue their bearish trend as traders predict that Brazil will continue to sell reserves due to the Brazilian Real’s weakness against the U.S Dollar. Price volatility remains low, with most of the week trading in a narrow range – but could a break out be on the way? Many analysts are predicting increased volatility in the near future, with possible El Niño effects putting its stamp on the market.


The Robusta market had a quiet week. Volume remained low even for this time of year as slack prices and a lack of volatility served to act as a hurdle to business.


The Pound gained steadily against the dollar this week on improved UK unemployment data and also the feeling that the Bank of England may well raise interest rates ahead of their US counterparts. The Sterling Euro exchange rate lingered between a defined two and a half cent trading range throughout this week without ever really looking like breaking.



Nearly 20 percent of Colombia’s second-half coffee harvest has been affected by drought and infestations caused by the El Nino weather phenomenon, the National Growers Federation (FNC) said on Friday. The weather pattern is linked to the warming of the Pacific Ocean and tends to leave Colombia and Central America drier. A moderate El Niño usually increases coffee output, but a more intense one can lead to drought and damage the crop, especially in low-altitude areas. Labour costs may rise by as much as 50 percent in some regions as growers hire more workers to combat broca insects, whose numbers tend to increase during drought, the federation added. At the same time, the reduced quality of the affected crops could lower prices. The federation did not say in the statement whether the phenomena will mean the country does not reach its 2015 output goal of 13 million 60-kg bags and officials were not immediately available for comment.


Some renewed concerns about lacking rainfall. The result could be the crop coming in a little earlier in regions badly affected. Some very early pickings started in lower areas. By the 1st half of October, it is expected that the harvest will gain momentum.


Uganda’s coffee exports rose 19 percent year-on-year in August, while earnings rose slightly; industry regulator Uganda Coffee Development Authority (UCDA) said on Friday. UCDA said in its monthly report the east African country shipped a total of 320,297 60-kg bags last month, up from 268,033 bags in the same period last year. The Robusta crop is around the corner and expected to start flowing from mid October onwards. Good overseas interest for lower grades.


Vietnam’s coffee market saw thin trading on Thursday as farmers held back beans expecting higher prices, while Indonesia saw brisk activity on solid buying demand despite lower export prices.

Farmers in Vietnam, the world’s biggest Robusta producer, have been demanding higher prices, but traders who are not in desperate need of beans, are unwilling to surrender, especially amid falling global coffee prices. Vietnam exported 92,600 tonnes (1.54 million 60-kg bags) of coffee in August, 13.6 percent lower than the previous month, Vietnam Customs said on Wednesday, below market expectations.