Coffee Market Report 20th to 24th May 2013

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: On Friday the market fell to its lowest point since October 2009. The devaluation of the real in Brazil and the peso in Colombia contributed to add weight on the coffee prices as producers were more inclined to sell.

Robusta:  Spec selling in London took up the reigns and kept the market under pressure. However, it wasn’t until the U.S traders arrived in the office that we saw both markets hitting new lows together.

Currency:  Following a dip mid-week, the market gained slight momentum rising above the 1.51 mark. This was a result of a lower than expected inflation data gave the BOE more scope to boost quantitative easing policy stimulus if required.

Physical Markets:

Brazil:

Colombia: Coffee flow for the mitaca is slowly coming to an end in lower regions, harvesting will continue for another couple of weeks. 

Ethiopia: ECX volume is increasing slowly whereas quality and price is decreasing. News on new crop is coming in positively as good amount of rainfall was noticed in growing regions.

Kenya: Demand for clean low grades, partly reflecting overseas buyer’s focus on the segment. Next auction on May 27^th will offer around 23,000 bags. Rains have basically stopped and fly crop harvest is soon to start.

Uganda: diffs on Robusta remain firm, though internal flow is expected to pick up. Fly crop is expected towards the end of June.

India: Arrivals of Robusta cherry has improved this week and found ready takers by intermediaries and exporters at unchanged firm prices.

Peru: Little activity in the first half of the week. Rainy weather returned with the negative effect on picking and drying. Arrivals slowed down again.

PNG: Arrivals improved in the week but still below expectations, on-going interest for all grades for shipment from June onwards.