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Coffee Market report 21st September 2015 to 25th September 2015

COFFEE MARKET NEWS Week Ending: 25th Sep 2015


22nd Sep

23rd Sep

24th Sep
























Janet Speaks

In a late night speech on Thursday, FED Chairwoman Janet Yellen, outlined the theoretical reasons why she is in favour of raising the federal funds rate later this year ‘Most FOMC participants, including myself, anticipate…an initial increase in the federal funds rate later this year.’


Over the week prices fell as Colombia and Brazil are boosting exports following healthy harvests. The weakness of Brazil’s Real helped drive prices down on Tuesday, with the currency hitting an all-time low against the dollar on renewed market concerns over the country’s political and economic crisis. However, there was a strong rally on Friday with the week closing at 122.70.


Robusta coffee futures fell to their lowest in nearly two years on Wednesday as favourable prospects for the crop in top producer Vietnam and a bearish technical outlook put the market on the defensive.

Despite export numbers out of Vietnam ending higher than first reported at 93,000 tonnes for August, this still leaves the cumulative numbers covering the Jan/September period some 30% below the same period of the previous season.


Sterling continued to struggle against the dollar throughout the week. The euro recovered from its recent losses against the US dollar early in the week and its strength also filtered through to GBP/EUR, however this resurgence was dampened somewhat towards the end of the week as the dollar continued to strengthen.


Brazil: Widespread rains that passed through south-eastern Brazil earlier in September set off the first wave of flowering in the coffee belt, which marks the start of fruit formation for the 2016 harvest. In the important coffee region of Guaxupe, in Minas Gerais, the state that accounts for half of Brazil’s coffee production, 70 percent to 80 percent of the trees on low-lying slopes are flowering while higher altitudes are flowering less. Trees that flowered will now need follow-up rains in the next two to three weeks to guarantee that the blooms set and turn into buds that will then develop through the season into coffee cherries or fruit. Local forecasters expect a new cold front to push through Brazil’s southeast in the coming week, which if confirmed could help set blooms and even trigger a second wave of flowering.

Tanzania: Due to a public holiday on 24th September, the auction took place on 25th September. 23,721 bags were on offer. Prices remained firm with strong demand coming from Japan – typical for this time of year.

Kenya: Little in the way of volume is presenting itself at the weekly auctions, and as we approach the start of the new coffee year (1st October), auction volumes remain subdued. Kenya straddles the precarious position between the end of the fly crop and start of the main crop. Nothing to excite anyone here.

In other news…

India is to have its first ever all women barista championship. The finalists hold different positions in leading cafes across India and had to prepare twelve cups of espresso, cappuccino and one signature drink. Famous Cupper Sunalini Menon, CEO of Women Coffee Alliance India (WCAI) said, ‘We are trying to spread the message of Indian coffee but also portray women behind coffee from the grassroot level.’