Coffee Market report 22nd June 2015 to 26th June 2015

COFFEE MARKET NEWS Week Ending: 26^th Jun 2015

Commentary

The market closings of the week do not give much away in terms of its volatility – Friday closed only a cent up on the week, but intra-day trading saw swings of 7cts – allaying to the indecision, instability and at times indifference in this market!

On the FX markets, GBP/USD was behaving and remained within the 1.5700 handle, touching a high of $1.5770 to close at $1.5744. GBP/EUR traded from a low of €1.3984 to a high of €1.4082 as lack of progress in debt talks pushed the pair higher. Similarly, pressure on the euro kept EUR/USD in a tight range, hitting a high of $1.1227 to close at $1.1204. Expect drama from this week’s trading with a ‘Greek –tragedy’ likely

Origins

Brazil – Brazil’s physical coffee markets were relatively calm this week as traders struggled to secure remaining 2014/2015 arabica lots while awaiting the arrival of new crop in hinterland warehouses in coming weeks. Harvesting of the arabica areas in Minas Gerais and Sao Paulo are behind average due to wet weather in May. Local analysts Safras e Mercado said 42 percent of the current crop had been harvested by June 23, down from the drought-stricken crop of 2014, which had harvested 52 percent by this time. Underscoring this general trend, Brazil’s biggest coffee cooperative Cooxupe said Thursday that farms surrounding Guaxupe in southern Minas Gerais state had harvested 11.3 percent of their crops, down from 27.5 percent this time last year.

India – Coffee Board has forecast the post blossom crop of coffee in 2015-16 to touch a record 355, 600 tonnes, up by 8.75% over the final production estimate of coffee in 2014-15. Every year the board releases two forecasts, the post blossom and post monsoon estimates. The total post blossom crop comprises 110, 300 tonnes of arabica and 245, 300 tonnes of robusta. The total crop showed an increase of 28, 600 tonnes over 327, 000 tonnes estimated in 2014-15.

Sumatra – has revised up its estimate of robusta coffee bean exports from its main growing area in Sumatra for the month of May, government officials said on Thursday.

Robusta exports rose 35 percent from a year earlier to 14,706.50 tonnes, revised government trade data showed, and were down 36 percent from April. The figure had earlier been put at 14,539.82 tonnes.

The world’s third-largest robusta producer shipped 10,918.66 tonnes of robusta from Lampung in the same month a year earlier and 22,992.64 tonnes in April.

Uganda – exports fell 8 percent year-on-year in May to 263,330 60-kg bags, while earnings also dropped, industry regulator Uganda Coffee Development Authority said on Friday.

Vietnam – the world’s largest producer of robusta coffee, will export an estimated 110,000 tonnes (1.83 million bags) of the bitter beans in June, up 2.5 percent from a year ago, the government said on Friday. The climb was in line with market expectations and marks the first such increase since November. It comes after rising futures prices triggered sales by Vietnamese exporters, speculators and some farmers who had been hoarding beans since late February in hope of higher prices.