Coffee Market Report 24th to 28th February 2014

COFFEE MARKET NEWS 24^th February – 28^th February 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: The last 5 days of trading has seen a steady decline in volume but nevertheless the market teeters on the edge moving higher most days. Overall this market seems indecisive short term but ultimately longer term this market seems to have some upside promise due to the potential damages we could see.

Robusta:  Although the week was not as positive as it might have been due to the late selling, this may bring in fresh technical buying on Monday although it will probably be offset initially by Vietnam selling. With both markets poised to break higher it will undoubtedly be a nervous start to the new month.

Currency:  On the FX markets, the euro was lifted by inflation holding at 0.8% pushing EUR/USD to a high of $1.3824, the highest rate this year, while GBP/EUR eased to a low of €1.2091.

Physical Markets:

Brazil: Now, 2014 has begun on a brighter note because of the weather-related troubles of Brazil, a major grower. Dry weather is expected to hurt coffee crop, with Brazil estimated to produce 53 million bags of coffee (1 bag = 60kg) in the current year against its potential of 58 million bags, according to a Bloomberg report.

Colombia: The premium for Colombian coffee in the United States jumped to a six-month high, spurred by high differentials in Central America where leaf rust has raised concerns about supplies, traders said on Thursday. Exporters in the world's No. 1 producer of washed arabica beans have hiked physical prices even as benchmark futures continued their rally

Honduras: exports from Honduras, Central America's top producer, will be 1.7 percent lower this season than previously forecast due to damage from a major fungal outbreak, an official with the national coffee institute said on Thursday. Shipments are seen totalling 4.52 million 60-kg bags, below am estimate of 4.60 million bags made in September, said Dagoberto Suazo, vice president of the national coffee institute IHCAFE.

Mexico: exports from Mexico fell 12.1 percent in January compared with the same month last year, the country's national coffee organization Amecafe said on Monday. Shipments for the month totalled 208,941 60-kilogram bags, down from 237,617 bags during the same month in the previous 2012/2013 harvesting season.

Kenya: The top price of Kenya's benchmark coffee grade rose by 19% per 50 kg bag at this week's auction from last week, the Nairobi Coffee Exchange (NCE) said on Tuesday. Kenya's speciality coffee beans are known for their high quality and are sought after by roasters for blending with coffee of lesser quality.

Tanzania: arabica coffee prices rose at auction last week, buoyed by higher New York markets and a decline in supply, the regulator Tanzania Coffee Board (TCB) said on Tuesday. The state-run TCB said 6,571 60-kg bags were offered at the latest sale and that 5,799 bags were purchased. At the previous sale, a total of 11,077 60-kg bags had been offered for sale, with 10,408 bags sold.

India: prices in India rose at a weekly auction due to strong leads from overseas markets and robust export demand. About 76,000 kg of coffee of the total 214,332 kg on offer was sold. Arabica accounted for 133,932 kg, while robusta made up 80,400 kg.

Indonesia: robusta coffee bean exports from Indonesia's main growing area in Sumatra fell 68 percent to 7,559 tonnes in February from a year earlier, government trade data showed on Monday. Indonesia shipped 23,912.15 tonnes of robusta in the same month a year earlier and 8,299.19 tonnes in January. The Southeast Asian nation exported a total of 355,771.23 tonnes in 2013, up more than 80 percent from the 197,421.89 tonnes exported in 2012.