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Coffee Market report 15th September 2014 to 19th September 2014

COFFEE MARKET NEWS 15th September – 19th September 2014

 

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-14 c/lb

182.20

185.25

184.85

181.20

178.00

Lon Nov-14 $/t

1977

1985

1977

1961

1940

£/$

1.6235

1.6285

1.6303

1.6362

1.6315

 

Futures Markets:

Arabica: The week began optimistically with the 190 levels in sight; however, Wednesday saw a relatively inactive day which put an end to any short term bullish sentiment and technically did enough to reverse the trend, pushing the market in to bearish territory lower to close the week below the 180 support @ 178.00

Robusta: followed NYC this week like a lost puppy, mimicking every move it made.  

Currency: A wild week on the FX markets this week as expectations of a “no vote” in the Scotland independence referendum saw Sterling recover recent losses as GBP/USD picked up to a 2-week high of $1.6408, while GBP/EUR rose to a 2 year high of €1.2732. Confirmation of the “no vote” on Thursday produced further Sterling gains with GBP/USD pushing above the $1.65 level, with GBP/EUR touching €1.28, before easing.

Physical Markets:

Brazil: the world's largest exporter of coffee, raised its estimate of the recently harvested 2014/2015 crop due to a bumper robusta output, the Agriculture Ministry said on Tuesday, but futures markets firmed on weaker arabica numbers. The overall coffee crop that ended harvest in past weeks was estimated at 45.14 million 60-kg bags, up from the 44.57 million bags forecast in May, CONAB, the ministry's crop supply agency, said in its third estimate of the crop. The increase in output from May came entirely from the robusta crop, which is expected to climb to 13.03 million bags from 12.33 million in May. Robusta output reached 10.81 million bags last season.

Kenya: The maximum price of Kenyan grade AA coffee dropped 5% per 50-kg bag at auction on Tuesday from last week, the Nairobi Coffee Exchange said on Tuesday. Worries over the coming crop due in December float around the markets, although no official crop report has been released as of yet.

Tanzania: arabica coffee prices fell at auction last week in line with lower New York markets as supply of the commodity increased, the regulator Tanzania Coffee Board (TCB) said on Friday. Prices of robusta coffee beans rose at the auction, with all the bags on offer sold.

Uganda: exported 268,033 60-kg bags of coffee in August, down from 318,338 bags shipped in the same month a year ago, an industry regulator said on Monday, extending a pattern of lower exports this year. The Uganda Coffee Development Authority did not give a reason for the fall. But industry experts in Uganda, Africa's number one exporter of coffee which mostly cultivates the robusta variety, have previously blamed drought affecting the crop in western Uganda during flowering and bean formation.

Vietnam: the world's largest robusta producer, exported 97,800 tonnes (1.63 million 60-kg bags) of coffee in August, up 10.3 percent from the previous month, Vietnam Customs said on Tuesday. The export volume is in line with traders' forecasts of between 70,000-120,000 tonnes and is slightly above the government estimate of 90,000 tonnes.