Weekly Market Report 18 to 22 June 2012

Futures Markets:

Arabica : The final Friday close only tells half the story on what was quite a volatile week.

The perfect storm of ECB troubles, further EU bailouts and fighter jets being shot down has put a lid on 

any market recovery to the upside.

Robusta : The Liffe market moved lower in line with Arabica although levels still look relatively high. Vietnam hold the key to these higher prices. Stock of Robusta’s in Europe, are dwindling but producers, notably Vietnam are holding onto stocks. So as long as demand remains strong so will the prices.

Currency : A rollercoaster of levels as a daily flood of mostly bad news hits any European currency,

traded against the Dollar.

Futures and Currency close levels:

Physical Markets:

Brazil : Favourable weather keeps the huge Brazilian crop on Target (estimated between 53 – 57 million bags).

Costa Rica : Icafe, Believes that the 2012/2013 coffee crop will be slighter worse than forecasted, some 6 % lower to 1.71 million bags. 

Nicaragua : Coffee exports dropped 3.3 percent in May compared to the same month a year earlier, reaching 196,366 60-kg bags in the month. 

Nicaragua's export association CETREX said coffee exports through the first eight months of the 2011/2012 harvesting   season totaled 952,708 bags, down 19.8 percent from the same eight-month period during the 2010/2011 harvest. 

El Salvador : El Salvador's coffee harvest next season will increase 14 percent over the current season, reaching 1.44 million 60-kg bags, the country's coffee institute, Procafe, said on Monday.

India: Monsoon Rains are on time and in good quantity offering perfect growing conditions.

Indonesia : Internal prices remain strong as large State side players are now in the market – Although prices have generally moved down from last year’s record highs.

Not much else to report at this stage.