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Weekly Market Report 28th January to 1st February

 

Futures Markets:

 

Arabica: The market did not find any comfort anywhere higher than 150 this week. Commercial activity was higher than usual on the sell side as the producers closed fixations of contracts for March ahead of the first notice day.

More sellers than buyers in this instance. 

Robusta: London burst out of its recent slumbers to break pass the barrier of 2000. There was good selling volumes and was the most impressive of the coffee markets for the week.

Currency: Despite the run of disappointing UK data, mortgage approvals in Dec rose more than forecast suggested. Although Sterling gained ground against the Dollar through the week the downward spiral is predicted to continue. Negative news from government and UK banks forecast the continuing weakness of Sterling against the Euro and the Dollar.

 

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Mar-13 c/lb

149.00

149.80

147.70

146.95

147.95

Lon Mar-13 $/t

1942

            1936

1968

2011

2049

£/$

1.5728

1.5710

1.5752

1.5809

1.5846

 

 

Physical Markets:

 

Brazil: Favourable rainy conditions prevailed over the week – still very much the same as last week.

Colombia: Approaching the end of the main crop, physical activity slowing down.

Ethiopia: The ECX has declared passed crop will not be traded from the 7th of this month. Good volume of Sidamo and Lekempti has been auctioned during the last 7 days.  

Kenya: Auction No.11 had 22,400 bags on offer. Mills are fast receiving the coffee and are in full flow. Weather remains hot with occasional patchy rains passing through.

Tanzania: This week’s auction saw good volumes of Mbuni coffees coming through, especially from the South, whilst the Northern producers to continue to find bright acidic and bold coffee. Pricing remains steady and similar to that of the previous auctions.

India: The washed plantation crop is as well in full swing, active trades were reported at more competitive export prices. The local roasting industry has started picking up the new robusta grades ruling lower prices.

Guatemala: Fear that the lower crop will be impacted by roya keeps the internal market at high price levels – the reason for very little export activity this week.

Honduras: The Honduran government declared a coffee emergency but it is much too early to talk about large losses as the damage is for the following crop. All current prices remain dependant on the amount of coffee arriving at the mills and the short covering of the exporters –and of cause the damage from Roya.

Nicaragua: A program was launched on Monday to train technicians to fight Roya that has apparently damaged about a third of the country’s coffee plantations and is fast spreading across Central America.

Costa Rica: Exports fell by  1% in January from the same month year earlier reaching 136,991 bags for the month according to the country’s national coffee institute, ICAFE.