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Weekly Market Report 7 to 11 May 2012


Futures Markets:

Arabica : The market seemed to be hampered by struggling CRB and stronger USD. It started the week low and finished on Friday on an upper level. Market lightly traded within tight price range compared to London.

Robusta : The market was pushed to new highs by the end of the week. Volumes were well above average with trade and origin continuing to sell, with much firmer prices bringing fixations. These solid gains might bring to the market more speculators buying after market reached 2070 levels

Currency :  The renewed uncertainty regarding Greece weighed heavily on the Euro as it continued to drop against Sterling and USD. Sterling was also under pressure after 3 weeks of recent highs, as market sentiment turned risk off below the 1.61 level against USD.


Futures and Currency close levels:







NY Jul-12 c/lb






Lon Jul-12 $/t













Physical Markets:


Brazil : Overseas demand was very small for current crop. Buyers expect levels to come off. Exports in April reached 1.96 million bags which are down by 30% compared to a year ago. On another note, harvesting is slowly spreading, towards a slightly smaller yield, but nothing sure at this stage of the crop.

Colombia : Internal coffee flow remains slow and logistics hampering the flow to the mills. However, compared to last year, April production rose by 11%.

Guatemala: The crop has come to end, the uncommitted stock are limited and the buying interest for better qualities continues. On another point, Fungus disease affects up to 40 % of Coffee trees at lower altitudes where it is warmer and wetter, conditions in which the fungus thrives, reported Reuters.

Honduras: There is still coffee available. Sales have already reached 6.3 million 46 kg in the season and they see the next crop can be even higher.

Kenya : 21,274 bags were offered on last auction held the 8 of May 2012.Mainly low grades were offered as mills switched shifting to naturals and low grades. Industry appetite was more interested by the fresh low grade than AA. On the other hand, Rains shower eased up, improving the weather conditions for the coffee.

Tanzania : Quiet Activity. Some occasional rains have been reported but overall weather conditions are good and stable.

Uganda : Buyers interest in washed Arabica still subdued though prices have softened. Robusta is flowing into the mills at better speed but prices remain firm. Coffee Exports fell by 20% to 141,22 bags in April compared to same period last year, due to farmers holding stock as prices have fallen, said the Uganda Coffee Development Authority.

Ethiopia :  Sundried and Washed  sales increased with softer prices,  Except for Harrar and Limu which are in shortage due to a lower coffee production in the fields.

India: Very mixed activity in the week. Arabica interest was again low; Robusta was very active at slightly better price, especially for Unwashed. Coffee areas received good rainfalls.

Vietnam : Business accrue with a rising LIFFE market. Some exporters are really careful to sell forward as May exports are estimated already to 120.00 tonnes. Also, more coffee producing countries buy more volume from Vietnam.