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Coffee Market Report 3rd to 7th June 2013

Coffee Prices, Futures and Currency close levels:







NY Jul-13 c/lb






Lon Jul-13 $/t














Futures Markets:


Arabica: Towards the latter end of the week the futures dropped on Friday even though the dollar weakened and a slightly firmer real. Volumes are still very much dominated by front Jul/Sep structure that is trading in key liquidity at present.

Robusta:  Volumes were overall very light resulting in the spread from July-Sept being -27. It felt as though the market was being knocked down by continued fund pressure as well as from origin. The feeling at the moment is being short in July is not the correct position, although it is a little early to think about being caught short for delivery!


Currency: The recent improvements in UK economic indicators gave little reason for policy member to increasing easing, and if the pace of recovery improves further, the debate could switch to how long can the monetary policy remains as loose as it is.



Physical Markets:


Brazil: Currency has controlled the market this week. Farmers are hording coffees as fine cup are getting ever closer to NY level.

Colombia: Weather has remained rainy this week slowing down arrivals of the remaining midcrop in the higher areas. Too many people are looking to buy the same coffee therefore differentials are continuing to spread further apart.

Costa Rica: Exports rose 10.1% in May compared to the same month a year earlier, reaching 180,480 bags in the month.

Ethiopia: The European cash coffee market saw strong demand for Ethiopian beans this week, but major industry players remain well covered and on the side-lines, awaiting an abundant Brazilian crop.

Kenya: The top price of the AA grade rose by $44 at last week’s auction.

Tanzania: Although everyone thought that there would not be another auction for many weeks the TCB (Tanzania Coffee Board) surprised us with the ‘final’ auction of the season. 1700 bags came from Mbeya region, known for producing a more floral flavoured coffee than the regions in the North. Parchment for new crop is already trickling in from low lying areas in the North with the South soon to follow.

Honduras: Exports rose 0.675 in May compared with the same month last year to 638,983 bags, the country’s national coffee institute stated last Monday.

India: The Seasonal south-west monsoon, which brings the annual rainfall for about three months, has been in full flow. Not much activity in the physical market as the available coffee is getting sold at very high levels.