Coffee Market report 7th April to 11th April 2014

OFFEE MARKET NEWS 7^th April – 11^th April 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: Tense moments for NY despite grappling back to the doorstep of the preceding 209.8 high, it stumbled Friday and by the thinnest of margin posted a downward outside day. This looks a very dodgy juncture to record such a feature and illuminates the warning light for the recent 190 pivot.

Robusta: London has started to suffer some wheel spin in the upper 2100’s on its new push away from a small sub-2100 double bottom. We seem to be wheezing a bit just shy of the upper Bollinger band.

Currency: On the FX markets, the US dollar remained under pressure following the dovish FOMC (Federal Open Market Committee) minutes with GBP/USD rising to 7 week high of $1.6820 while EUR/USD peaked at $1.3898.

Physical Markets:

Brazil: Brazilian coffee industry association ABIC on Thursday said output from the world's top producer would probably fall to 47 million 60-kilogram bags of beans this season after drought hurt the harvest in many states. The lower production is likely to raise prices for Brazilian consumers in 2014 but not enough to reduce consumption, ABIC President Americo Sato told Reuters on the sidelines of an event in Sao Paulo. The national coffee council last week said the crop would yield at most 43.3 million bags. Last year Brazil produced 49.2 million bags of coffee, according to government figures.

Kenya: The top price of Kenya's benchmark coffee grade went up just 1% per 50 kg bag at this week's auction from last week, the Nairobi Coffee Exchange (NCE) said. A total of 23,037 bags were offered, with 12,945 sold. Last week 23,780 bags were offered, with 8,943 sold, NCE said in its report late on Tuesday.

Uganda: Uganda's coffee exports in March rose by 11.9 percent year-on-year to 348,423 60-kg bags, helped by end-of-season stockpile clearance, a source at the state agency said on Friday. "We're soon moving into a new season… perhaps most exporters wanted to clear out their stores so they have more room to accommodate the new crop," said a source at the state-run Uganda Coffee Development Authority (UCDA).

Indonesia: Indonesia is drafting new rules to force coffee exporters to register trades with a domestic exchange, a government official said, as the world's second-largest robusta producer bids to have a greater say in the prices of the commodities it produces. The Southeast Asian nation introduced a similar rule for tin in August, which has cut exports and supported global prices, but it is no longer a global price setter for coffee and any fall in exports would likely be filled by ample supplies from top robusta producer Vietnam.

India: Coffee prices in India edged higher at a weekly auction, helped by overseas leads and firm export demand. About 78,000 kg coffee of the total 244,256 kg on offer was sold. Arabica accounted for 121,281 kg, while robusta made up 122,975 kg.