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Coffee Market report 29th September 2014 to 3rd October 2014

COFFEE MARKET NEWS 29th September – 3rd October 2014

 

Global coffee production could fall by four to five million 60-kg bags in 2015/16, driven by lower output in Brazil, analyst Andrea Thompson of CoffeeNetwork, part of INTL FCStone, said in a report on Wednesday.

" would be a year-on-year decline of 15 percent.

 

 

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-14 c/lb

191.25

193.35

200.40

208.60

206.50

Lon Nov-14 $/t

1963

1963

2068

2067

2080

£/$

1.6248

1.6206

1.6180

1.6153

1.5970

 

Futures Markets:

Arabica: Arabica coffee futures soared to within 2 cents of a two-year high as forecasts for further dry weather in Brazilian growing areas exacerbated concerns over the country's 2015 harvest.

Arabica coffee futures for December soared 6.7% to 213.75 a tonne  in New York at one point, just below the April top of 215.70 cents a pound which represented the highest for a spot contract since early 2012.

Robusta:  Fresh fund buying emerged taking Nov to recent highs helped by a firm NY market, same as usual, Liffe trying to mirror image the NYC.

Currency: On the FX markets, the euro enjoyed gains following the ECB press conference as EUR/USD rose to a high of $1.2698 while GBP/EUR slipped to a low of €1.2720. Meanwhile GBP/USD fell to a 3-week low of $1.6110.

Physical Markets:

Brazil: Arabica coffee futures rose to their highest level in more than five months in active trading on Thursday, driven by increasing concerns about dry weather in top producer Brazil and its impact on the 2015/16 crop. Cocoa on ICE Futures U.S. continued to slide as key growers hiked prices paid to farmers, a move expected to boost supplies, while raw sugar was little-changed.

Nicaragua: output for the 2014/2015 harvest could reach 1.61 million 60-kg bags, up more than 7 percent from last season due to better control of the tree-killing fungus roya, national coffee council Conacafe said on Friday. Lower rainfall, as well as better plantation management has helped coffee farmers contain the roya outbreak, said Conacafe head Juan Ramon Obregon.

Honduras: production is seen rising 20 percent during the 2014/2015 harvesting season compared to the previous cycle to reach 5.4 million 60-kilogram bags, the country's national coffee institute IHCAFE said on Wednesday. Honduras, Central America's top coffee producer, produced 4.5 million 60-kg bags during the previous 2013/2014 cycle, IHCAFE Vice President Dagoberto Suazo told Reuters.

Costa Rica: exports fell 10.5 percent during the 2013/2014 harvesting season to total 1.25 million 60-kilogram bags, the country's national coffee institute ICAFE said on Wednesday. Shipments in September, the last month of the season, reached 29,167 bags, down nearly a quarter compared to the same month last year.

Tanzania: The average price of arabica coffee in Tanzania rose at auction on strong demand, the coffee board said on Wednesday, but no robusta coffee was sold at the auction after growers rejected the low bids on offer.

Indonesia: Robusta coffee bean exports from Indonesia's main growing area in Sumatra fell 62 percent to 21,035.74 tonnes in September from a year earlier, government trade data showed on Wednesday.

Indonesia shipped 55,470.47 tonnes of robusta in the same month a year earlier.