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Weekly Market report 4th March to 8th March 2013


Futures Markets:

Arabica: The market remained quiet either side of the spike which occurred on Monday – similar levels of the low 140s, was once more a common sight. Higher share prices have drawn market attention away from commodities for the time being.   

Robusta: The market found comfort above the 2100s. Traders seem happy for prices to come to them as ranges fluctuate during the day and then settling in the evening. The Liffe followed suit of the NY on Monday after being inspired by a late rally. Robusta prices remain very expensive, differentials for bold been at origin are extremely strong as buyers are still being found even at these sustained highs.

Currency: The last few weeks have seen a material change in the rhetoric of the UK Monetary Policy Committee towards supporting growth and coping with higher inflation. This has created speculation by investors ahead of the meeting on Thursday which revolves around news that the monetary policy stimulus may increase.  In real terms Sterling has collapsed against the Dollar in what appears to be a self inflicted wound as the BoE tries to make UK exports more attractive.  

Coffee Prices, Futures and Currency close levels:







NY May-13 c/lb






Lon May-13 $/t














Physical Markets:


Brazil:  A record crop is expected for the current season as the lower-yielding half of the year is expected to be higher than expected.

Colombia: Truck drivers have ended a three-day strike but coffee farmers are still trying to block roads to the port.

Peru: Additional Roya outbreaks have been reported in most parts of the country causing further headaches.

Guatemala: Output could fall up to 25% in 2013/14 due to the severe outbreak of roya according to the ICO.

India: Arrival of washed Arabica is slowing down. Robusta harvest has reached 75%.

Kenya: No auction this week as the elections still continues. Uhuru Kenyatta remains in poll position ahead of Raila Odinaga. Next auction is scheduled for the 12th March after elections have been completed.

Tanzania: Average qualities were on offer this week but only with limited quantity. Bargaining seems to only start once the talks start about new crop.

ICO: World coffee consumption has increase by 31 million bags between 2002 to 2012, reaching 142.2 million bags. The increased demand is being met by the huge volumes produced by Brazil, Vietnam and Indonesia.