Weekly Market Report 4 to 8 June 2012

Futures Markets:

Arabica : The downward trend continues as prices move back to their recent lows. The world coffee supply and demand figures and the unwillingness of any large brokers or hedge funds to take any sort of speculative position can only point (in the short term) the market in one direction.      

Robusta : Although Robusta prices have fallen they remain expensive. Vietnam can manipulate prices as they ship in the numbers that keeps the supply tight and the demand for lower grade, cheap and accessible coffee is still high. 

Currency : World currency markets are in a state of flux – wild swings either way have been incurred and should be expected to continue. 

Futures and Currency close levels:

Physical Markets:

Brazil : Exported 1.77 million 60-kg bags of unroasted green coffee in May, down from 2.4 million bags in the same month last year,

Colombia : coffee output rose 2 percent in May, the second monthly increase in a row, showing crops are recovering after a slump in production caused by months of heavy rains.

Guatemala : Coffee exports fell in May by 10.5 percent from the same month a year earlier to 416,636 60-kg bags, the country's coffee association said . The crop is down 4 percent from the same eight-month period during the 2010/2011 harvest. A strain of the coffee disease known as leaf rust fungus is attacking crops.  

Kenya : The top price of Kenya's benchmark coffee grade AA eased to $329 per 50 kg bag at this week's sale from $341 at the previous auction

India: India's annual monsoon rains have arrived at the southern Kerala coast, a top weather official said on Tuesday, brightening prospects of higher farm output

Indonesia : Robusta coffee bean exports in May from Indonesia's main growing area in Sumatra slumped 54 percent to 9,355.3 tonnes from a year earlier.

Vietnam : Coffee exports this month could fall to between 100,000-110,000 tonnes (1.67-1.83 million bags) from 150,000 tonnes shipped in May as stocks held back.