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Weekly Market Report 24 to 28 June 2013

Coffee Prices, Futures and Currency close levels:







NY Jul-13 c/lb






Lon Jul-13 $/t












Futures markets :

Arabica: Last week’s focus was book-squaring for the July position, with delivery month starting today.

After the previous week’s decline in prices, the last five trading days saw a consolidation, and prices recovered 110 points (0.9%).

Robusta: Close level was up on Friday and a high level of market activity increased volumes to 31,602 lots. Certified stock levels for Robusta were published last week (total tenderables decreased by 156 lots to 11,958, non-tenderables increased by 3 to 28 lots). 

Currency: The Brazilian real fell below 2.22 last week while the US dollar remains firm.  GBP fell to a low of $1.5163 against the dollar on Friday but nudged its way up to above 1.52 by close of trading.


Physical Markets:

Brazil: The country’s much-monitored winter continues to be mild, with no threats of frost to date and crop development is good.  The Brazilian Agriculture Minister has requested that the National Monetary Council approve $175 million to support coffee producers.

Colombia: With the fly crop now over, the little coffee still available is mostly being held by producers awaiting a rise in market prices.  A meeting this week by the Coffee Dignity Movement will analyse the benefits of the current subsidy programme – famers not receiving the 36 cts/lb cannot meet minimum production costs.

Peru: Fair weather and increased output mean good movement of coffee out of Peru despite offers remaining generally above buyers’ expected levels for the region.

Kenya: The 5.2% growth in the country’s economy is being attributed to the buoyant agricultural sector, of which coffee remains a driving force.  An upsurge in demand for lower grades (FAQ) is leading to a difficulty in meeting demand.

Ethiopia: Rumours tell us that exports are very low, and that the government is pushing for the circa. 30,000  unsold tonnes of coffee to be moved.  We are trying to investigate this further.

Vietnam: Rains are predicted for the first 10 days of July to fall in the Dak Lak province.  The area represents up to 30% of the country’s production. Exports are down 29% on the same time last year.

Papua New Guinea: Difficult weather conditions have resulted in a lower crop than usual.  Prices remain firm and offers limited.

Indonesia: June’s Sumatra robusta exports were down 21% on the same time in 2012.