Coffee Market report 23rd June 2014 to 27th June 2014

COFFEE MARKET NEWS 23^rd June – 27^th June 2014

“Laugh and the world laughs with you, snore and you sleep alone”. – Anthony Burgess.

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: The NYC was quite stable throughout the week and acted as if it was asleep with mere volumes from Monday to Thursday. Friday on the other hand had a 13 cents range settling at 172.55 c/lb as the lowest of the week.

Robusta: LIFFE attempted to mirror image NYC all week except Friday when NYC went down. Overall the Liffe jumped $52/pmt.

Currency: On the FX markets, the US Dollar remained on the back foot as GBP/USD rose to a high of $1.7039, softening any market rise.  Meanwhile, GBP/EUR pushed back above the €1.25 level to a high of €1.2526.

Physical Markets:

Brazil: 2014 coffee harvest is between 35 and 40 percent complete, the president of the country's National Coffee Council said on Thursday, citing reports from member cooperatives. The Council is maintaining its forecast, last revised in April, for a coffee crop of 40.1 million to 43.3 million 60-kilogram bags after severe drought hit coffee-producing areas in the world's top producer in January and February, Silas Brasileiro told Reuters.

Colombia: Colombia's National Federation of Coffee Growers (FNC) is finishing preparations for the labour-union elections that will take place in early September, local media reported on Tuesday. Close to 370 thousand coffee growers across Colombia will participate in the FNC elections, which will elect 4,608 representatives in 368 municipal committees throughout 15 states, according to Colombia's El Espectador newspaper. The elections, which occur every four years, will take place between September 6 and 7 of this year. Election candidates will be able to register themselves between June 28 and July 28. Around 14,000 candidates from the various coffee growing regions will look to participate in the elections.

Mexico: exports from Mexico fell 20.2 percent in May from the same month last year, the country's national coffee association, Amecafe, said on Monday. Mexican coffee shipments in May totalled 252,703 60-kg bags. During the first eight months of the 2013/2014 harvesting season, Mexico exported 1.64 million bags, down 29.4 percent from the same eight-month period during the previous season.

Kenya: Little activity in Kenya this week as Auctions have ceased for the annual summer break. Reports suggest that most of the contentious Nyeri coffees finally did find a home, though it wouldn’t surprise many in the industry to find a number of these coffees mixed in with the early fly crop offerings when Auctions resume in a few weeks time. Price offerings remain firm throughout from exporters who still hold main crop stock.

Indonesia: The current harvest in the world's third-largest coffee producer after Brazil and Vietnam was expected to reach its peak this month, but exporters were confronted with erratic daily arrivals from plantations to key export ports. Indonesia competes with neighbouring Vietnam in the robusta market. The bitter-tasting robusta beans are either blended with higher-quality arabica for a lower-cost brewed coffee or processed into instant coffee.

Vietnam: the world's top robusta producer, exported an estimated 110,000 tonnes (1.83 million bags) of coffee this month, 22.4 percent more than a year ago, the government said on Friday, below market expectations. May coffee exports were revised down to 137,400 tonnes, from 170,000 tonnes in an earlier estimate, the General Statistics Office said in its monthly report.