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Weekly Market Report 19 to 23 March 2012

 

Futures Markets:

Arabica: The market was on an upward trend until Thursday when the market slumped by almost 8 cents to its lowest level since October 2010, breaking the resistance of 181.05. This trigger is due to following economic facts:  slack Chinese and European manufacturing data which show s an unhealthy economic growth.  It recovered a bit on Friday but on a quieter trading session with lower volume.

Robusta : The market remained quite stable within a range 2010-2230  performing well versus its NY counterpart, despite the impressive performance pushing back over the mid Bollinger band to revisit recent highs. Outright volumes remained low in the week.

Currency : US Dollar were still weak against  Sterling even if  US housing data improved . Euro came under pressure following the Purchasing Manager Index data adding to fears that Europe is back to recession. Consequently, Sterling hit a new high against Euro.

 

Futures and Currency close levels:

 

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY May-12 c/lb

183.50

183.60

184.70

176.95

178.75

Lon May-12 $/t

2024

2032

2022

2008

2033

£/$

1.5850

1.5916

1.5876

1.5866

1.5850

 

Physical Markets:

Brazil : Many exporters were out of the market, without indicating or offering aggressively. In terms of weather, temperatures remain at 30-32 Celsius.

Colombia : The good flowering so far will not make any difference to the annual production which is forecasted to 7 million bags for this year. Differentials were still firm with the currency (pesos) not helping at all.

Guatemala : A slow week with very limited activity in better qualities for North America but for Europe still subdued. The crop is coming to an end with an exception of the Huehuetenango region.

Kenya : As the last week auction was cancelled, quasi nothing to report. Quite calm activity.

Tanzania : 10,200 bags were on offer last auction with mainly qualities from the North area. Prices fell due to low quality beans as it is the end of the season. The next auction will take place on 29 March 2012.Weather remained stable with some occasional shower in the southern part whereas it is sunny and dry in the North.

Uganda : As it is the end of the season, the activity is really slow expect for some business with Unwashed Arabicas.

Ethiopia : Missing rains in all areas might caused a drought and affect the flowering for the next crop. Exporters are moving a bit their prices with the NY volatility, expect for the Harrar due to a shortage production.

Indonesia : Arabica and Robusta new crop were coming in a better volume last week but we are not still at the peak of the season.

India: Arabica were finding very few buyers as sellers were also reluctant to offer against the NY prices. Almost 40-50% of Arabica is mostly is still unsold, farmers are waiting to catch a higher market. 

Vietnam : Moderates sales as prices ease due to a fall of London Market.

Papa New Guinea: The new crop is slowly starting, there were even some picking in Morobe Area.  Exporters are waiting to see how the harvest will develop before offering. There was an earthquake in the highland last Thursday, but thankfully any damages were caused.

ICO: The earning from the shipment of coffee rose by 50% to 22.7 billion in the 2010/11 for a total of 104.5 million bags compared to 15.1 billion for a volume of 94.3 million bags in 2009/10.

Other :  In order to compete against Nespresso on the single cup market, Green Mountain and Starbucks expect to distribute Starbucks branded “Vue” packs in grocery stores, other retailers in USA and on Green Mountain website by next fall, the two companies said on a joint statement.