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Coffee Market Report 21st to 25th October 2013

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-13 c/lb

112.70

111.95

110.55

110.30

109.10

Lon Jan-13 $/t

1585
1579

1586

1582

1538

£/$

1.6156

1.6242

1.6177

1.6205

1.6173

 

Futures Markets:

 

Arabica:  

The outright markets are managing to maintain the slide largely under spec selling pressure as origin finds it hard to take a real interest at these deflated levels. However, the flip side is that industries have a market very much in their favour. They are running a relatively comfortable cover already and show little urges to step in the way of a market in this mood.

Robusta:  Long liquidation especially in Robusta pressured the market to its lowest level since the June 2010 and NY to March 2009. Traditional support was largely absent and left he market at times looking very thin. For not the first time in the week London went out at the lows of the session implying that we still have further weakness ahead.

Currency:  The minutes from the October meeting of the UK Monetary Policy Committee showed members voted unanimously to keep the bank rate on hold at 0.5% and maintain the QE programme at £375bn. This news along with the recent data from the US keeps the £ in a strong position against the US$.

 

 

 

Physical Markets:

 

Brazil:  Export selling depressed. Trade enquiries noted but not much biz concluded. Santos port logistics cause a few headaches. Climatic conditions for the next crop are excellent at the moment.

Colombia:  Coffee flow now reaching its peak, a couple weeks earlier than normal, due to optimal weather during September which accelerated the ripening process.

Guatemala: New crop activity still slow as differentials for mainstream coffees are further on above current Colombia offers. Good demand has been seen for early new crop extra primes and for premium qualities.

Ethiopia: The ECX is the exact contrary to ICE. The New York terminal market is closing the full week with negative figures and the internal ECX auction prices going higher and higher.

Kenya: Differentially/quality wise not a big change. But outright auction levels declined further due to weak ICE futures and many exporter bids were below reserve prices.

India: Physical activity is quiet as there are no buyers. Few shippers sold Robusta Cherry new crop to the local soluble industry. Export business for the new crop is at a standstill for nearly all qualities