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Coffee Market Report 2nd December to 6th December 2013

Monday Tuesday Wednesday Thursday Friday
NY Mar-14 c/lb 110.85 110.20 108.40 106.00 106.40
Lon Jan-14 $/t 1658 1733 1697 1686 1721
£/$ 1.6359 1.6411 1.6382 1.6332 1.6341

Arabica:  After a subdued previous week, the market was noticeable jumpy. The market reversed its positive short climb by triggering long liquidation. The decline appeared to be a spec driven fall arguably in line with the weakness across the softs and agri-commodity complex.

Robusta: With a market that has chopped and changed as much as it has this week on both outrights and spreads trying to predict whether we would ultimately finish the week with a positive or negative session was a particularly tough call, although the market did finished on being short…..

Currency:  The US economy grew faster than initially estimated in the Q3 resulting in the GBP/USD to tightening its daily range.


Physical Markets:

Guatemala: Coffee flow is slowing down in some regions, and there are hardly any leftover coffees as most producers sold their crop immediately in order to get a hold of the government subsidy. It has been raining heavily in most coffee regions, which is normal for time of the year, and is helping the development of the upcoming midcrop.

Honduras: Situation has not changed much. The internal market continues extremely firm, mostl driven by two or three exporters. New offers are therefore very had to come by and if, only at firm differentials. The coffee flow is steadily improving. Qualities of the new crop so far looking very promising in bean size and cup quality.

Brazil: Mixed. Internal prices higher. Yet, fine cup coffee business difficult. But apparently a few longer spreads where done. Traders and exporters taking turns. Nearby fill ins of weaker cupping coffees could partly be very attractively bought by overseas buyers. Real devalued abt 3% from last week.

Uganda: Robusta crop flows now very well. And with better Liffe levels, a slightly weaker Shilling trades have increased and diffs have softened a bit. Arabica mixed. Drugar internal/external demand still strong but availability and pricing difficult. Washeds slow, only smaller bean coffees attracted some buyers.

Papua New Guinea: Flow of coffee is negligible in these days. Exporters are covering their nearby commitments before offering additional fly crop positions. Ongoing interest from outside for Y1 Grade for nearby shipments.

Kenya: Sale 5 had 17,000 bags on offer. First main crop coffees available and of rather promising quality fetched good prices. Overall pricing steady. Next auction with 18,000 bags and then a break until Jan 7th.