Coffee Market report 16th June 2014 to 20th June 2014

COFFEE MARKET NEWS 16^th June – 20^th June 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: The week in NYC market acted in similar fashion to others. Started and ended in quite similar levels, but the volatility during the week is still around 10-11 cents. Most active days were Thursday when market dropped to 166.00 and Friday when it went back to the level as the beginning of the week.

Robusta: The trend on London’s LIFFE was quiet during the week, noticeable for the period of the year to have a slight slump.

Currency: On the FX markets, the US dollar traded on the back foot following the FOMC rate announcement and Janet Yellen’s press conference that indicated rates would stay low for some time to come. GBP/USD pushed to a high of $1.7062 while EUR/USD traded above the $1.36 level to a high of $1.3643.

Physical Markets:

Mexico: farmers in Mexico and Central America should see output rise by at least 10 percent next season as the mostly arabica growing region begins to recover from a devastating fungal outbreak. The region responsible for more than a fifth of the world's arabica coffee crop is suffering its worst-ever outbreak of roya, or coffee leaf rust, but the upcoming 2014/2015 harvesting season should provide significant relief.

Nicaragua: exports from Nicaragua rose 17.6 percent in May from the same month last year, the country's national export centre, Cetrex, said on Wednesday. Nicaragua's coffee exports totalled 260,579 60-kg bags in May. The Central American nation, one of the region's smaller coffee producers, shipped 987,384 bags during the first eight months of the current 2013/2014 harvesting season, down by a quarter from the same eight-month period the previous season.

Costa Rica: upcoming 2014/15 coffee harvest is seen rising 7.25 percent to 1.6 million 60-kilogram bags as a widespread coffee fungus had less of an impact than expected, the country's national coffee institute ICAFE said on Tuesday. Costa Rica, known for its high-quality arabica beans, is one of Central America's smaller coffee producers but like much of the region, has been affected by the coffee fungus, known as roya, which has lowered output.

Kenya: The top price of the benchmark Kenyan coffee grade rose by 9% per 50 kg bag at Tuesday's auction from last week, the Nairobi Coffee Exchange said.

Uganda: exported 286,668 bags of coffee in May, down 15 percent from the 393,783 bags exported in May of last year, a source at coffee regulator UCDA said on Monday. “It is at the tail-end of harvest in the south and south western region so yields are also declining and heavy rains in some parts of the region also disrupted transportation of stocks from rural areas,” the source at the state agency said.

India: coffee prices rose at a weekly auction, in line with overseas markets. Arabica Coffee prices at New York for July delivery were higher by 5% cents per pound. Robusta coffee prices at London for July were higher by 9% per tonne.