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Weekly Market Report 26 to 30 March 2012



Futures Markets:

Arabica : The market incurred a turbulent  week. It climbed almost 10 cents on Tuesday, bringing prices almost 190 c/lb. It went down near to 175 levels on Thursday and then it finished the week of by recouping all off 5 cents losses to the 180 level. It has been helped by the weaker CRB and macro index but also the fact that there is not enough appetite to extend the fall through recent lows.

Robusta : In the week, the market has been choppy during the week and managed to break the 2050 level. Due to the huge Open Interest in May options and particularly in the 2050 strike – the volatility seems to continue. The market eased a bit by the end of the week with the origin selling, especially Vietnam coming in.

Currency :  Sterling registered gains against US Dollar breaking through the $1.60 level. Also Euro made gains to $1.333 following news that European Ministers are preparing to increase the rescue fund.


Futures and Currency close levels:







NY May-12 c/lb






Lon May-12 $/t













Physical Markets:


Brazil : Very small business reported on the external market with differentials still not moving cheaper to the levels wanted by the final buyers. The government plans to boost loans to coffee producers so they can stockpile their beans from the coming large crop and managed their sales. Weather speaking, Light rains keep coming to South Minas Areas with temperature around 30 Celsius. But a cold front down south Brazil brought temperatures below zero in those areas.

Colombia : Production registration for March is 318,000 bags from Private exporters and 90,000 for FNC, it is  40% less than the same period last year. In southern provinces, new coffee power houses are set up which may help to recover from a three year output slump with expansion of production area. In terms of weather conditions, there are some rainy days but favourable outlook for an additional flowering during the end of the year.

Honduras: The physical activities are quiet with an ongoing competitive internal market. Mills are working at full capacity to ship their commitments but there are still few delays seen for nearby shipments.

Kenya : During the auction activities of Sale Number 17, it was quite active as exporters competed hard for the top quality range, 22,747 bags were on offer. The news regulations are still under discussion with the ministry. In terms of weather, it was still dry and sunny, hopefully it will ne get too dry.

Tanzania : Weather, good conditions with just sufficient rainfall for the crop. Robusta flow is expecting for May/June. Internal market is still high compared to the global market idea.

Uganda : Overall activity still quiet as the new season offers will come from May-12 onwards.

Ethiopia :  Market activities corresponding to the volatility of NYC with ECX following slowly.

Indonesia : Offers for new crop Sumatra available from May to August. Buyers and sellers are still trying to agree on the differential basis. New crop Robusta premium jumped to their highest in a month as there is a slow progress of the current harvest.

India: Robusta prices rose on support from local buyers as well as exporters.

Vietnam : Coffee exports in March are estimated to rise 24.5% from a year ago said the government General Statistic Office.

Papua New Guinea: Exporters are reluctant and hesitating to enter new crop business, as buyer price ideas are not fulfilling their requirement so far.