Coffee Market report 25th August 2014 to 29th August 2014

COFFEE MARKET NEWS 25^th August – 29^nd August 2014

‘’World coffee exports totalled 9.73 million 60-kg bags in July, up 3.7 percent from the same month last year, the International Coffee Organization said.’’

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: the week began quietly, with Monday’s close just above where it opened. Tuesday however, saw the market rally over 10cts after the latest negative Crop report from Brazil and continued its daily rise to over 200cts closing out on Friday at 201.20cts. The report compiling numerous estimates, places production this season anywhere between 40 to 51.5 Million bags, with an average estimate of close to 47m. This is hardly news per se, but enough to kick some life in to a market that was looking for direction.

 Robusta: the market this week, whilst not as reactionary to the NYC as it could have been saw steady gains throughout the week, adnd settled comfortably in the 2000’s

Currency: On the FX markets, EUR/USD remained under pressure hitting a low of $1.3158. Broad support for the US dollar saw GBP/USD unable to maintain a rise above the $1.66 level and slip to a low of $1.6565.

Physical Markets:

Brazil: drought-damaged 2014 coffee crop that is nearly harvested will likely yield between 45 and 47 million 60-kilogram bags of beans, Americo Sato, president of the Abic (Brazilian Coffee Industry Association) industry association, said at an event on Tuesday. Abic forecast 47 million bags for the crop in April. Its estimate is still above the National Coffee Council's view for a 40.1-43.3 million bag crop. The harvest is some 90 percent complete and experts expect the 2015 crop could also suffer drought damage.

Kenya: The maximum price of Kenyan grade AA coffee dropped at auction on Tuesday by 1.5% per 50-kg bag last week's sale, the Nairobi Coffee Exchange said on Tuesday.

Indonesia: Robusta coffee bean exports from Indonesia's main growing area in Sumatra fell 32 percent to 21,986.28 tonnes in August from a year earlier, government trade data showed on Monday. Indonesia shipped 32,263.33 tonnes of robusta in the same month a year earlier and 14,181 tonnes in July.

Vietnam: the world's largest robusta producer exported an estimated 90,000 tonnes (1.5 million bags) of coffee in August, 7.5 percent higher than a year ago, the government said on Tuesday, in line with market expectations. July coffee exports were revised up to 89,000 tonnes, from 85,000 tonnes in an earlier estimate, the General Statistics Office said in its monthly report.