Arabica: The market enjoyed positive gains throughout the week as prices moved to three week highs. Aggressive funds were seen to be covering more short positions within the vacuum created by origins that are still long and industry fairly well covered out (at least nearby).
Robusta: London managed to trade to its highest level since the beginning of November last year, this was aided by another short covering exercise with fresh long positions. The continued high prices that Robusta’s are still commanding may have an effect on conventional Arabica’s to the upside as the arbitrage gets closer.
Currency: Friday’s latest UK retail sales report put Sterling under renewed pressure.
Coffee Prices, Futures and Currency close levels: