DRWakefield +44 (0)20 7202 2620+44 (0)20 7202 2620

Coffee Market report 4th August 2014 to 8th August 2014

COFFEE MARKET NEWS 4th August – 8th August 2014

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Sep-14 c/lb

190.50

189.40

190.85

184.00

180.85

Lon Sep-14 $/t

2007

2007

1992

1968

1948

£/$

1.6855

1.6880

1.6843

1.6834

1.6776

 

 

 

 

 

 

Futures Markets:

Arabica: the overview of the week looks like the market went down by 10 c/lb, but the volatility throughout ranged 16-17 c/lb between the highs and lows. The first half of the week saw limited change on settlement prices with the market struggling to find which direction it preferred. Thursday/Friday gave somewhat of a different story falling under pressure finding new support levels. Let’s see what next week will bring for us.

Robusta: The beginning of the week was very much the calm before the storm, similar to the NYC.  Fridays London structure continued to creak with the selling in the nearby and the buying slightly further down the board. Sep/Nov traded in good size out to a low of -$12. Nov/Jan broke the back of level l money and promptly fell to – $3 and then on to a low of -$7 on the evening session.

Currency: On the FX markets, EUR/USD slipped to a low of $1.3336 before recovering slightly following Draghi’s commitment to use QE if needed. Meanwhile, GBP/USD was broadly unchanged, touching a low of $1.6821.

Physical Markets:

Brazil: exported 2.66 million 60-kg bags of green coffee in July, nearly unchanged from June shipments of a revised 2.65 million bags, the Council of Green Coffee Exporters (Cecafe) said on Thursday. Brazil exported 1.93 million bags in July of 2013. Even with drought damage to the crop, which is now in the final stretch of the harvest period, Cecafe reported a 21 percent increase in coffee exports since January compared with the shipments over the first seven months of 2013.

Colombia: produced 1.24 million 60-kg bags of arabica coffee in July, the highest output for that month in 16 years, the National Coffee Growers' Federation said on Tuesday, and a 20 percent increase over July last year. Exports of the washed, mild arabica coffee rose 23 percent in July from the same month last year to 970,000 bags, an increase in volume that comes as the market contends with a smaller drought-damaged crop from the world's top grower, Brazil.

Guatemala: exports from Guatemala fell nearly 22 percent in July compared with the same month a year earlier, national coffee organization Anacafe said on Wednesday. Guatemala exported 293,312 60-kg bags last month, down from the 375,054 bags it exported in July 2013.

Kenya: The top price of the benchmark Kenyan coffee grade rose 5% per 50 kg bag at this week's auction from the last sale, the Nairobi Coffee Exchange said on Tuesday. 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.