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Coffee Market Report 28th October to 1st November 2013

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-13 c/lb

107.55

106.95

106.85

105.40

105.55

Lon Jan-13 $/t

1500
1504

1509

1482

1489

£/$

1.6158

1.6041

1.6005

1.6055

1.5921

 

Futures Markets:

 

Arabica:  NY also trader in a weak manner, but eventually both managed for the first time in a long while to recover off the sessions low with some conviction.

Robusta:  Big movement is the real today. First notice day blues lead to illiquid trading in London with some nasty ‘clunks’ lower – speculators still increasing their net short position in futures and options.

Currency:  On the FX markets, the euro lost over 3 cents to the US dollar and 2.5 cents to Sterling last week. EUR/USD hit a low of $1.3478 on Friday while GBP/EUR rose to a high of $1.1842. The US dollar also made ground against Sterling as GBP/USD slipped to a low of $1.5907

 

Physical Markets:

 

Brazil: Activity is quite boring. Only some nearby activities are reported.  Shipments until October 30th reached 2.2 million bags.

Colombia:  Even though the market continues to fall, the flow of coffee still remains. Demand remains at good level as we are seeing single differentials for the first time since 2008.

Guatemala: Interest picking up for the new crop. Premium qualities found buyers with unchanged differentials. Business for mainstream coffees remains minimal as buyers/sellers remain too far apart.

Honduras: Development of crop 13/14 continues normal with pickings/flow slowly improving. Coffees arriving at mills are still of poor quality and low yields but this is normal for the time of the year.

Ethiopia: The Government pushing Exporters to fulfil their outstanding contracts. Leftovers of washed coffees offered but buyers saying ‘we can wait for the new crop’ and squeeze sellers. New crop cherries are still green so we expect new crop shipments to start in January.

Kenya: No Auction this week, auction number 3 scheduled shortly with 15,000 bags on offer.

India:  Minimal activities in the market as buyers are totally withdrawn even as the asking prices are far from the affordable levels.

Papua New Guinea: A quiet week with less available stocks. Some internal short covering has taken place, no fresh current crop business has been noted.