+44 (0)20 7202 2620

Coffee Market report 6th July 2015 to 10th July 2015

COFFEE MARKET NEWS Week Ending: 10th July 2015

6th July

7th July 8th July

9th July

10th July

























The week was so quiet that you could hear a pin drop; NYC moved only 1USc/lb from Monday to Friday. Regarding daily volatility between ‘high and low’ on averages it was about 2USc/lb, which is to be honest not much at all. The LIFFE was probably following NYC as it has changed only 12US$/mt from Monday to Friday, volatility was also about 10-20US$/mt every day. In over all, this week will start where it started last week.

On the FX markets, the BoE rate announcement had a muted impact on Sterling with GBP/USD closing a touch higher at $1.5377 from where it opened at $1.5358. The Euro remained resilient amidst ongoing Greek uncertainty touching a day high against Sterling of €1.3962 and closing lower at €1.3931. EUR/USD touched a day’s low of $1.0989 however rallied late in the session to close at $1.1036 as the Greek proposals were submitted.


Brazil – farmers harvested 52 percent of the estimated 50.4 million bag crop by Tuesday, slightly behind the 55 percent average for this time of year, local analysts Safras e Mercado said on Thursday. Sales of the new crop reached 27 percent, ahead of the five-year average of 25 percent sold by this time, Safras added. Brazil’s southeast coffee belt has been wet in early July, which tends to slow harvesting. “Rains forecast for the coming days in Parana, Sao Paulo and Minas Gerais states should slow the progress of harvest, as well as hurt the quality of the beans,” Safras coffee specialist, Gil Barabach, said in a report. He added that delays in the early harvest due to rain, weak demand abroad and the shift in the new crop year in July has limited sales of the new crop.

Colombia – coffee regions have been drier than usual for weeks as an El Nino weather anomaly takes effect and the crop will see less rainfall from now until harvest time, potentially limiting its size in a few areas, agronomists say. The National Coffee Federation’s top agronomist, Carlos Armando Uribe, said Wednesday the entity’s estimate of a 12.5-13 million 60-kg bag crop was still realistic though the drier conditions would increase the threat of crop damage from pests. “It’s likely it will rain less but it will rain. In some areas that have soils with good moisture retention, there is no risk,” Uribe said, referring to the central Andean region on which most of Colombia’s coffee is grown. Soils in more northerly regions tend to dry out more quickly without a top-up of moisture, he said, which could reduce output there if beans are not able to fill out to full size by the time the most intense harvesting period starts from September.

Ethiopia – Difficult to find words that can describe the market other than quiet and boring. Yirgacheffe pricing remains hugely competitive, Limu remains largely scarce.

Kenya – Fly crop auctions resume tomorrow (14th), some good cupping coffees scheduled to come through. The port strike in Mombasa is now over and expected delays are not substantial.

Indonesia – As internal market remains strong the drop in prices in Vietnam has not affected the Indonesian differentials.

Vietnam – coffee sales extended their slow pace on Thursday as selling prices were below expectation, prompting buyers to look at alternative supply in Indonesia or Brazil, traders said. As Vietnam’s exports slowed, robusta outflow from rival producer Indonesia surged 52 percent to 59,590 tonnes (nearly 1 million bags) in the first quarter of the current crop year from 2014, government data show.