+44 (0)20 7202 2620

Weekly Market Report 27th February 2nd March 2012

Futures Markets:

Arabica : After a rise nearby to 205.00 on Monday-Tuesday,  the market fell down by the end of the week to 200 c/lb levels. NYC remained choppy within the bear flag. There were fairly good volume traded with industry prepared to act around these levels to maintain cover whilst specs are looking for upside opportunities and frustrated for not even maintaining the strength of the market at around 205 c/lb levels.

Robusta : London Market slumped to 2010-2020 levels this week. It has becalmed now that it has broken into the delivery month. Origin was hedging but not enough leading the theories of an exit strategy for Mar-12 stopper. Market is still uncertain and remains sideways.

Currency : . Euro came under pressure on news that Greece’s second bailout of €130 billion from EU/IMF will be delayed. Weaker US Dollar due to the rise of US Crude Oil inventories (much more than expected)

Futures and Currency close levels:







NY May-12 c/lb






Lon May-12 $/t












Physical Markets:

Brazil : Market remained very quiet with almost no business to report. Internal market prices stayed firm and almost unchanged. February update exports are 1,804,517 bags, according to Cecafe. In terms of weather, it is extremely hot with no rains. The government announced that taxation of 6% over money capitalised overseas will have an incidence period of 3 years instead of two. This measure is set up to prevent the real to get stronger, controlling the flow of US dollars into the country. 

Colombia : February registrations are 417,000 bags compared to 593,000 bags in February 2011. Exporters are cautious with coffee sales due to a lower crop volume (around 6 million bags for the season) and the fell of NYC. They offer only 1-2 month ahead. There is almost no coffee is the growing areas this is due to the weather pattern change with more heavy rains for the 3-4 last years, said private exporter.

Guatemala: Coffee exports in February were near flat at 368,910 bags compared to the same period last year.

Honduras : Due to large amount of offers and continuous absence of buyers, the differentials have been under pressure. As a result, exporters started to sell coffee against NYC.

Costa Rica : In February, 175,000 bags were exported around 4% higher than the same period last year.

Kenya : Last sale took place on 28th February with 25,421 bags on offer. Prices for high and FAQ Qualities remained firm. The price hike for gourmet and AA fell back to a lower level than the previous week.

Tanzania : The last auction Number 24 appeared rather lacking with only 10% of the whole volume sold as farmers are asking for high prices. The Next auction will be on March 15 with no volume indication yet. The main qualities on offers are Grinders and Mbunis. Weather is still warm and sunny.

Uganda : Roasters are not so interested in Robusta purchase as there are plenty of coffees still in European warehouse at a better price than in origin.

Ethiopia :  Last Friday was an holiday. Exporters start shipping sundried coffee which looks difficult as farmers keep their washed position and need to sell more of it first.

Indonesia : ICO increased their estimate of 2011/12 output to 9.2 million if a combination of hot weather reappeared in the main area growing island of Sumatra during the current harvest for the peak of the crop due in April/May. In February, Robusta exports slumped by 69% to 5, 452,23 tonnes, according to  the government trade data.

India: Very little activity during this week with the NYC Market around 200 c/lb farmers are not interested tinselling their Arabica coffees. Robusta is trading as usual with a stronger London Market levels.

Vietnam : Buyers are mainly interested in spot Europe due to high freight and high Liffe Market. Naively, farmers are hopefully waiting for some interest soon but at what prices?

Papa New Guinea: The weather is fairly dry, with some light showers at night, which is good for the coffee. Crop expectation remains lower than last year.

ICO: World Coffee Exports totalled 7, 99 million bags in January running behind the previous year (8,87 million bags), said the ICO.