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Weekly Market Report 12 to 16 March 2012


Futures Markets:

Arabica : During the week, the market toyed with both upside and downside but in the end, it continues to go lower and its trend remains firmly negative. Sellers appeared to lose their appetite after a heavy decline, although it may return if the recent low of 181.05 is broken. Volume was boosted by reasonable May structure turnover although spread range remains little changed.

Robusta : The first two days of the week, the market gapped lower and recovered its level above the 2000 mark by Wednesday and it finished the week almost unchanged from the same day last week. There are limited interest out of origin as farmers refused to chase prices down, traded volume remained sluggish but increased due to a large amount of AAs which implied new positions for the first round of tenders.

Currency :  Sterling remained under pressure against euro. US Dollar was getting weaker due to the worse than expected release data. At the same time Sterling rose by around 2 cents in the week and euro reversed its downward trend against US Dollar.


Futures and Currency close levels:







NY May-12 c/lb






Lon May-12 $/t













Physical Markets:

Brazil : Internal activity was lower than the previous week. After a general panic, producers were starting to selling a bit more frequently but still no big sales. Weather, there was some short and intense heavy rains in South Minas Gerais with a temperature around 28 to 32 C.

Colombia : Domestic market is very small as there are Little coffee left in the fields. The Mid crop is coming but expectations remained low. However, the weather is favorable causing a good flowering for the crop with hot and dry conditions

Honduras: The crop is almost around 80 % harvested. Exporters have sold a good volume to be certified against NYC.

Nicaragua: Exports dropped 27, 7% in February compared to the same month last year.

Costa Rica : The recent drop on coffee prices has prompted producers to look to China and South Korea as an Alternative market, said ICafé. Even though 60% of the crop has been sold already, the remaining 40%

is expected to yield lower profits than estimated due to the lower market.

Mexico : Coffee exports rose by 18,6 % in February compared to the same month last year.

Kenya : The auction 16 planned on 13 March has been cancelled over illegal sales. The auction running body decided to stop the practice of unlicensed dealers only distributing samples to active buyers. 

Tanzania : There was port congestion which can cause some delay for exports.

Uganda : In February, the country exports 244.319 bags with 157,800 bags of Robusta and 86,429 bags Arabica, an increase of 25,96 % in comparison to last year. Activity is still quiet as it is the end of season.

India: Farmers were not willing to sell Arabica at current levels whereas Robusta has seen an excellent activity when Liffe was down early in the week.

Indonesia : Rains were keeping farmers busy to dry coffee in a decent way.

Papua New Guinea: First picking for the new crop were reported in Western Highlands Province. In Morobe province farmers were still delivering the left over available.

Vietnam : Customs have revised upward their export figures for February 12 from 180,000 to 202,000 metric tonnes which equates to a 40% rise compare to February 2011.However, so far the export data for the 2 first month is still below than the same period last year.