Coffee Market report 1st September 2014 to 5th September 2014

COFFEE MARKET NEWS 1^st September – 5^th September 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: the week began on Tuesday very strong and headed higher on the back of reports that rains were not heading far enough in land in Brazil, and continued bullish crop reports and fears surfaced (continued to circulate) The market then came to its senses, and the remainder of the week saw prices come under pressure to close 4cts below where it opened.

Robusta: A choppy week for Robusta this week as Buying pressure from the NYC market trickled over to help push up support, but like NYC any support was sold later on the week, to close out relatively unchanged.

Currency: On the FX markets, the ECB rate cut saw EUR/USD fall by more than 2 cents to its lowest level in over a year hitting $1.2918. Meanwhile, GBP/EUR rose to a high of €1.2656 with GBP/USD dipping to a low of $1.6166 on the back of Scottish referendum fears.

Physical Markets:

Colombia: produced 1.15 million 60-kg bags of arabica coffee in August, an increase of 49 percent over the same month in 2013 as production continues to rebound after a run of poor harvests hit by disease and bad weather, the Coffee Growers' Federation said. But exports of the washed, mild arabica coffee fell in the month to 889,000 bags, down 4 percent compared with August of last year.

Honduras: exports from Honduras, Central America's top coffee producer, rose 5.5 percent in August, the country's national coffee council IHCAFE said on Monday. Meanwhile, coffee shipments from neighbouring Costa Rica edged down nearly 3 percent, national coffee council ICAFE said. Coffee exports from Honduras in August were 152,310 60-kg bags.

Guatemala: exports from Guatemala slid in August compared with the same month last year, Anacafe, the country's national coffee organization, said on Wednesday. Guatemala shipped 267,029 60-kg bags for the month. The Central American country exported 2.92 million bags during the October-August period, down nearly 16 percent compared to the same period during the previous season.

India: exports have dipped nearly 6% for the eight-month period that ended August 2014, following a supply squeeze and slack demand. While demand is expected to pick up in the coming months, growers fear that the inclement weather will pull down production. Coffee export figures touched 2, 22, 297 tonne by August-end. This is 5.5% lower over the same period last year. The exports had shown a rise in the initial months because of increased shipments of arabica. But the shipments have slowed down after April.

Tanzania: expects a bumper coffee harvest in 2014/15 thanks to good rain and plantings by farmers, the regulator Tanzania Coffee Board (TCB) said on Tuesday. State-run TCB said 25,693 60-kg bags were offered at the first auction of the season last week, with 25,560 bags sold. "We expect a bumper harvest this season, with production likely to be in excess of 55,000 tonnes, which is more than the previous season," Primus Kimaryo, director of quality and promotion at the coffee board, told Reuters.