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Weekly Market Report 9 to 13 July 2012

Futures Markets:

Arabica : NY had a choppy performance with what transpires now to be an erroneous shout of the dreaded “Frost” from Brazil. The market closed by Friday on a bullish note – as funds covered their short positions on Weds/Thurs, just in case the cold snap did occur over the weekend!  

Robusta : Also a variable week for the London Market as it meandered eventually to a weekly high. Other factors such as Oil prices had an effect on levels and speculators move back into Index linked trading.  

Currency :  The Euro remained under pressure against US$ and Sterling despite a softening in Spanish bond yield repayment levels. Also Italy’s downgrade weighed on the Euro, slipping to a low. US$ is still strong against Sterling due to the continuing concerns in Europe.

Futures and Currency close levels:







NY Sep-12 c/lb






Lon Sep-12 $/t













Physical Markets:


Brazil : Harvest is behind schedule because of rain. Good local activities with differential softening. Weather forecasters tend to not see freezing temps but some rains may fall again. The volume of new sales on exporters books are below historical Brazilian Arabica participation on FOB Market, for this time of year. Robusta Demand increased.

Colombia : Weather was good for main crop development and for the flowering of next year mitaca. Around 6 weeks away from the new crop deliveries, not putting pressure yet on producers yet. Differential softening by exporters as they want generate good business for the new crop business.

Peru: Demand more active this week, focusing on Sept/Oct shipment. Exporters were not really ready to commit for the new crop as farmers are not satisfied with NYC market levels.

El Salvador: Coffee exports dropped by 51.7% in June compared to same month last year. This is due to poor weather conditions during the harvest as well as a delay in exports of high quality beans, according to the national coffee council.

Kenya : Auction on pause until 17th Jul 2012. Prices and quality are unchanged. Moderate Physical business.

Tanzania :  Quiet Business. Coffee flow has just started and prices are staying firm.

Uganda :  Activity quite slow and prices staying firm.

Ethiopia :  Some exporters being long are starting to offer some nice outright offers. However other exporters buying to ECX are offering still following NYC on upper trend. There were still port congestion in Djibouti which is getting bigger and bigger which cause delays.

Indonesia : Robusta being stopped to offer because of  lower Liffe Market. Quality and Quantity of the coffee increased due to nice weather patterns.

India: There were more monsoon rains in the coffee areas during the week which is good for the coffee. Robusta was quiet as prices moved further not following Liffe.

Vietnam : According to government information  21.8 million bags have been exporters between Oct-11 and Jun-12. Some traders did not expect any leftovers for the coming crop as the buying interest continues. Weak London market makes farmers think about their unsold position. Differential remains firm.

Papua New Guinea: |Headlines dominated by the least polls of the National election. Most business has been temporary closed.