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Weekly Market Report 14th to 18th October 2013


Coffee Prices, Futures and Currency close levels:







NY Dec-13 c/lb






Lon Nov-13 $/t












Futures Markets:

Arabica:  Market fell back under the mid BB which seems to have been trigger for short term specs. Market traded lightly with thin volume all week and the weak US dollar was unable to give much needed support.  It is too low for origin to sell and low enough for industry make firm stance. Fundamental are still bearish but some roaster buying suggests some support is around to the recent lows.

Robusta: This week the lower trends went on under the weight of speculators selling and lacking sufficient industry or profit taking interest the market outrights just continue to erode.

Both Markets had slow and low days on Thursday/Friday as most traders were focused on event in Sugar market.

Currency:  End of the week, Sterling was boosted by the better than expected retail sales pushing GBP/USD to a high of $1.6172 and GBP/EUR to €1.1836. The Euro also made ground against a weaker US dollar.

Physical Markets:

Brazil:  Weather forecast are anticipating good rainfall in the main coffee areas liable to help with the set of the new coffee buds and lead to a flowering which will increase expectation for next crop. The Real is strong and external interests are level below selling ideas. Government idea to give 2 million bag option offer for varying qualities did was finally not approved.

Colombia:  Coffee flow continues to improve and water still optimal for harvest. Good amount of business but exchange rate is not helping to get higher price.

Guatemala: Little activity as just start harvest for the lower grown qualities looking at Dec/Jan shipment. New crop grades remained untouched as difficult to match prices between sellers/buyers.

Nicaragua:  Expects coffee output during the 2013/201 season drop by 20% from the previous season as a result of the fungus roya , seen at reaching between 1,2-1,3 million bags said Conocafe

Peru: International business still at standby. Northern Peru got some decent rainfall during the week

Ethiopia:  A meeting with the Minister of Trade, the ECX and all exporters took place this week. They will try to improve quality and quantity of coffee exports by changing terms to secure quality and also being closer to the NYC market.  Trades are still standstill as new season price will be coming early November.

Uganda: Internal Robusta flow improved but price still steady.  Arabica prices are too far apart to get decent volume traded.

Tanzania:  Arabica prices rose at auction, taking their cue from the NYC market as supply of commodity increase slightly, said the regulator Tanzania coffee board. It also expects 2013/14(june/April) crop to fall to 45,000 tonnes from around 71,600 tonnes from the previous season which was the highest output in 20 years.

India: The Rupee is getting in trouble and the government struggling to keep it in line. New crop harvest for Arabica starts early compared to last season but more exporters are confused due to the low NYC. Calm market with few trades on washed at a good premiums.

Vietnam:  Exported 63,550 tonnes (1.06 million bags) in September, the last month of 2012/2013 crop year, a drop of 9.7% from a year ago, Vietnams customs have announced.