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Coffee Market Report 7th to 11th October 2013

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-13 c/lb.

114.50

115.05

115.25

114.40

116.70

Lon Nov-13 $/t

1709
1696

1722

1736

1733

£/$

1.6094

1.6082

1.5940

1.5965

1.5942

 

Futures Markets:

 

Arabica:  Like a game of Snakes and Ladders it takes a long time to climb up the board but one bad throw can see you back to the starting point. Speculators were driving the market up only to make a quick few cents. The end of the week gave us the highest settlement within the last five days. May-14 saw trades as high at 119.35 which we haven’t seen since mid-August.

Robusta: London saw reasonable support this week; it feels likely that we should test the 1750s sometime this week – but only time will tell.

 

 

Currency:  the US dollar was supported by hopes of a breakthrough in the US political deadlock. The US dollar made gains pushing EUR/USD to a low of $1.3487 while GBP/USD eased to $1.5912.

 

Physical Markets:

 

Brazil:  Local and export business remained to a minimum. Good flowering last week and more flowerings expected shortly – conditions are looking good.

 

Colombia: Optimal weather conditions remain, good flowering have taken place for the midcrop. Business taking place to all directions – buyers are trying to bid differentials even lower, but internal replacement remains stubborn.

Ethiopia: Stable prices as sundried demand still lingers. News that exporters last week mainly sold to Japan short therefore needing to cover their positions this week.

Uganda: Rather quiet, robusta season yet to kick off. Weather has been wet and cloudy so not ideal for ripening and drying

Tanzania: Levels remain steady where over 25,000 bags were on offer.  

Peru: The Roya impact seem to be about 25% for this season and we hear serious effects. Therefore,

official help from government side is organized in terms of fertilizer, pesticides, finance and training

courses for farmers.

PNG –New crop enquiries on the rise but exporters very cautious and would like to see the crop develop further.

 

AOB:

The best hope for a rise in arabica coffee prices may be a continued revival in values of robusta beans, a leading analyst said, forecasting that output in Colombia could recover to its highest for more than 20 years – Agrimoney, 2013.