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Weekly Market Report 3 to 7 December 2012


Futures Markets:


Arabica: While the market has potential to move upwards on a corrective basis, it still has a lot to prove to instill confidence within the industry. Volumes have been slowing in each session with the attention being on the spread support, although prices rose enough during the week to tempt origin to sell.

Robusta: Disappointing performances in a vast range of commodities this week caused speculative buying to be out of the question, resulted in the market dipping in the final day of the week.

Currency:  President Obama held firm on the “fiscal cliff” on Tuesday, insisting on higher tax rates for wealthy Americans. The US unemployment rate fell to a new post-recession low of 7.7% from 7.9% in the previous month, therefore we could expect an increase in quantitative easing to commence in January.


Coffee Prices – Futures and Currency close levels:







NY Mar-13 c/lb






Lon Jan-13 $/t


















Physical Markets:


Brazil: Good Cup differentials remain keenly priced even at lower market levels. Fine Cup diffs are getting stronger as a result lower availability (due to heavy rains at harvest time).  

Colombia: Coffee flow is now at its peak and some lower areas report less volume than originally expected.

Kenya: No auction this week, the next on is on the 11th when 13,500 bags will be on offers – this is expected to be 50% fly crop and 50% main crop. Auctions will resume on 8th January after the Christmas period. 

Tanzania: Prices rose at the auction last week as supplies fell according to the Tanzania Coffee Board. Local roaster are taking the freshly milled past crop plantation grades at good prices in the lack of exporters participation.

India: Picking of Arabica has commenced in all three provinces in Karnataka except for areas of high altitude.

Honduras: November exports jumped by 87.2% in November from the same month a year earlier, reaching 137,624 bags, according to the country’s national coffee association.

Indonesia: Robusta coffee bean exports in November for the main growing areas in Sumatra jumped 402% to 29,850.81 tonnes from a year earlier, government trade data showed. Forecasts for the following season 12/13 are that the crop will be 10% lower.

Guatemala: Exports rose by 34% in November on left inventories, reaching 140,501 bags in the month according to the national coffee association. The first two months of exports have increase by 32.9% against the previous year’s first two months.

Ecuador: Exports of Robusta beans dropped 15% to 122,650 from a year earlier.

Mexico: Leaf rust is unlikely to dent production until the 2013-2014 harvest, a top official with the national coffee association Amecafe stated.

AOB: A fast slide in coffee prices risks threatening the sector’s sustainability and snuffing out incentives for some to produce, according to the head of the International Coffee Organisation (ICO).