Futures Markets:
Arabica : NY made new lows again in the week and the downward trend continues. Despite some industry covering, the outlook points to more sellers than buyers, therefore the market looked to be slipping into oversold territory.
Robusta : London finally succumbed to a spec wave of liquidation. The market has felt increasing weighty in the last few days. Overall, the market was bearish and it seemed to be that roasters need even lower prices to cover.
Currency : The Euro moved lower against the USD as Sterling collapsed nearly four cents against USD.
Sterling looked even more vulnerable after shockingly bad PMI manufacturing report.
Futures and Currency close levels:
|
|
Monday |
Tuesday |
Wednesday |
Thursday |
Friday |
|
NY Jul-12 c/lb |
Closed |
165.40 |
164.40 |
162.95 |
157.50 |
|
Lon Jul-12 $/t |
2247 |
2241 |
2213 |
2180 |
2158 |
|
£/$ |
1.5706 |
1.5580 |
1.5489 |
1.5351 |
1.5363 |
Physical Markets:
Brazil : Some regular current crop enquiries from industry and some business concluded. New crop buyers expect more selling pressure to come with the progressing harvest and hold off covering. Only few exporters anticipate and booked some business.
Colombia : Mitaca coffee flow continued at a slow but Constance pace. 438.000 bags were shipped in May 2012. Weather has improved confirming the expected end of La Nina.
Honduras: Good rains, warm weather and nice flowering, the next big crop should come.
Kenya : During the last auction held 29th May, around 19,908 bags on offered, almost Mbunis and grinder on offers with some premium grades still available but with firm high prices.
Tanzania : Weather is still favorable and positive, buyers showing some interest already as some early harvesting is going on, exporters and farmers preparing for the new crop.
Uganda : Weather conditions has improved which make it easier for processing and exporting the coffee.
Ethiopia : Prices for washed qualities are still bit high as it doesn’t follow NYC Market. Unwashed qualities are at better prices.
India: Unwashed Robusta continued to be very high due to good demand from the local industry.
Papua New Guinea: Coffee flow continues but less in volume, crop estimate circling around whispers 700.000 bags only.
Monday and Tuesday’s (4th & 5th June) trading was of course very quiet due to The Queen Elizabeth’s Diamond Jubilee celebrations. Hopefully this and the Olympics will be the much needed shot in the arm for the UK retail and manufacturing sector.
