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Coffee Market report 2nd June 2014 to 6th June 2014

COFFEE MARKET NEWS 2nd June – 6th June 2014


Coffee Prices, Futures and Currency close levels:







NY Jul-14 c/lb






Lon Jul-14 $/t













Futures Markets:

Arabica:  The NYC felt somewhat lethargic awaiting concrete news that can move the market in either direction. We are coming nearer to the ‘crunch time’ where the market may cut through support levels triggering fund selling or a decent upside move leading to spec short covering.

Robusta: At long last we had a ‘dull’ trading week but it feel like it may be the calm before the storm. The market is hanging on to recent support levels of 1900 –  which way will we go……we will just have to wait and see.

Currency: On the FX markets, the euro weakened to a four month low against the US dollar immediately after the ECB rate cut pushing EUR/USD down to a low of $1.3502. However, the fall-out was short-lived with EUR/USD bouncing back and is trading around $1.3650 early Friday morning.

Physical Markets:

Brazil: Brazilian forecasters held their estimates of the current drought-damaged coffee crop unchanged on Friday, despite the recent rains, which they say would only have the potential to help the recovery of output in the 2015 season. Brazil's national coffee council (CNC) said that recent rains would not reverse drought damage caused earlier in the year, and kept its forecast for a harvest of 40.1 million to 43.3 million 60-kilogram bags. The forecast was based on field work conducted by Procafe, a coffee research group.

Colombia: Colombia produced 1.05 million 60-kg bags of arabica coffee in May, up 12 percent from the same month last year, the national coffee growers' federation said on Wednesday, while exports slipped 3 percent to 831,000 bags. Colombia's mild arabica coffee output is rebounding after a run of poor harvests caused by roya, or leaf rust fungus, and poor weather. The farmer-funded federation did not give a reason for the small year-on-year decline in exports. The federation expects output of 11.4 million 60-kg bags this year, it said in March, up from 10.9 million in 2013 and just 7.7 million bags in 2012.

Honduras: ranks first in Central America, third in Latin America, and sixth globally in coffee exports by volume. Honduran coffee production in marketing year (MY) 2014/15 (Oct 2014-Sept 2015) is forecast at 5.0 million 60-kilogram bags – up from 4.6 million bags in 2013/2014. Honduras was affected by the coffee leaf rust in about 25 percent of the cultivated coffee acreage (71,000 hectares) in MY 2012/2013; however, the impact was lessened due to the rapid expansion in coffee area planted.  

Guatemala: exports from Guatemala fell by 14.6 percent in May from the same month a year earlier, national coffee organization Anacafe said on Tuesday. Guatemala exported 399,165 60-kg bags last month, down from 467,439 bags exported in May 2013.

Costa Rica: exports from Costa Rica slipped 1.8 percent in May compared with the same month last year, national coffee institute ICAFE said on Monday. Total coffee shipments from Costa Rica, a smaller producer known for high-quality beans, reached 177,170 60-kg bags in May. Exports during the first eight months of the current 2013/2014 harvesting season totalled 879,195 bags, down nearly 14 percent compared to the same eight-month period during the 2012/2013 season.

Kenya: The top price of the benchmark Kenyan coffee grade dropped by 10% per 50 kg bag at this week's from last week, the Nairobi Coffee Exchange said. Kenya is a relatively small producer of coffee but its beans are much sought after by roasters to blend with those of lower quality from other producing countries.