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Weekly Market Report 16 to 20 April 2012


Futures Markets:

Arabica : Initially on rather subdued turnover with attention turned in NY first notice day on 20th April.     Then, the market had positive close to the week on Friday, specs and roaster buying competed for offers.

Robusta : During the week, the market was sideways, but satisfied to consolidate on gains. The strength of the market also highlighted by reduced Liffe Certified Stock figure release in the week, minus 684 bags compared to the previous month.

Currency :  Following the UK retail sales release Sterling hit a five month high against US$ breaking through the1.6140 level. It also reached the 20 month high on trade weighted basket of currencies as investors become more optimistic about the outlook for the UK. The euro traded sideways but still weak due to concerns about Spain.


Futures and Currency close levels:







NY May-12 c/lb






Lon May-12 $/t













Physical Markets:

Brazil : The demand is coming from overseas but unfortunately exporters are finding hard time to meet bids for both current and new crop inquiries. Central Bank reduced the interest rate to 9%, a cut of 0,75%. This is tight lowest level since 2010.This measure impact directly on exchange rate, making the Brazilian real weaken and accumulate considerable loss in the week. The decision was driven by Government to maintain the economy growth rate by4%.

Colombia : The mid crop is further delayed due to heavy rains all over coffee regions. Size wise do expect a similar quantity to last year.

Guatemala: The crop 2011/12 is now nearly finished. Only little export activity has been seen in this week.

Honduras: Crop is now finished. There are still some quantities of parchment looking for buyers.

Peru: Coffee Production is expected to fall by around 15% this year to 4.753 million bags (6.2 million quintals) due to heavy rains and a shortage of workers, the National Coffee Board said.

Rwanda: Coffee revenue grew 84% to $5.9 million in first quarter due to higher international prices and increase in demand for the country’s beans, the National export Board said.  

Kenya: Coffee prices dropped 9.9% at the last auction as they tracked weak global markets, the Nairobi Coffee exchange said.

Uganda : Some business booked ranging across washed lower and main grades up to Robusta.

Ethiopia : Most exporters don’t follow the ICE market and having stock & losing money as they are waiting too long.

Indonesia: Disappointing Asalan arrivals keeping the prices high, whereas with the dry season showing up, we will see some bigger volume drying the next week and may some see some drops in the market. 

India: The much awaiting blossom showers occurred in the most of the coffee areas in Karnataka and Kerala.

Overall the blossom is viewed as satisfactory by Arabica planters.

Vietnam : Around 20 to 35% of the coffee is still left in the farmers hand. Differentials for nearby shipments dropped into a little minus versus July Liffe market.

Others: Starbucks will introduce instant dairy products worldwide and bring its Verismo single serve brewer to China next year as it triples stores in the Asian Nation. This week, Fairtrade USA announced a record high of certified imports to the United Sates. In comparison with 2010 an increase of 32 % has been registered in 2011, more than 5,07 million bags imported. This increase can be explained by the fact that regular consumer is more aware of the product as well as several new members to Fairtrade network.