Coffee Market Report 30th December 2013 3rd January 2014

COFFEE MARKET NEWS 30^th December 2013 –3^rd January 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: NY returned to higher levels than which it started the week – speculative selling diminished and technical buying returned. The coming week will hopefully bring back a full audience to the market.

Robusta: London also drummed up a bit of a rebellion Friday but it still faltered short of the immediate 1668 resistance.  Most of the spread activity was in Mar/May again, the switch came into +$16 as the market made its lows but jumped to +$33 in the afternoon as spec buying drove March higher. Volumes on Friday were a healthy 3,000 lots leaving little interest in Jan/Mar again.

Currency:  On the FX markets, the weaker than expected UK manufacturing data saw GBP/USD drop sharply from a high of $1.6603 to a low of $1.6412. The US dollar also posted gains against the euro as EUR/USD dipped below the $1.37 level to a low of $1.3628.

Physical Markets:

Brazil: Total production for 2014/2015 is forecasted to be around 51m a drop in 9m from forecasts two months ago.

Colombia: produced 10.9 million 60-kg bags of arabica coffee in 2013, the national growers' federation said on Friday, a 41 percent jump over the previous year, helped by improved weather and millions of new trees reaching productive age.

India: Coffee output in India may fall 10.23 percent to 311,500 tonnes in the year starting October 2013 due to untimely rains in southern Karnataka state, the major producer, the government-run Coffee Board said on Friday in its post-monsoon crop forecast.

Honduras: exports from Honduras edged up 0.3 percent in December, national coffee institute Ihcafe said on Thursday, but a blight of leaf rust could still drive down the current 2013/2014 harvest.

Indonesia: Robusta coffee bean exports from Indonesia's main growing area in Sumatra climbed 17.6 percent to 22,425.74 tonnes in December from a year earlier, government trade data showed on Thursday. Indonesia shipped 19,071 tonnes of robusta in the same month a year earlier and 51,613.24 tonnes in November.