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Weekly Market Report 9th to 13th September 2013

Coffee Prices, Futures and Currency close levels:

 

Monday

Tuesday

Wednesday

Thursday

Friday

NY Dec-13 c/lb.

118.05

116.65

120.80

120.60

120.00

Lon Nov-13 $/t

1758

1757

1769

1753

1747

£/$

1.5709

1.5742

1.5821

1.5807

1.5804

 

Futures Markets:

 

Arabica:  After 14 days in a sideways trend the NY broke out to the upside on Wednesday, on Thursday it was poised to go higher but crashed 300 points then rallied back to the highs.

 

Robusta:

Robusta witnessed its first close below 1750 since June. Consensus would now suggest a further pullback towards 1700 however we imagine there will no doubt be a healthy amount of both profit takers and bargain hunters camped out back into this June low.

 

Currency:  The robust UK jobs data caused Sterling to jump to its highest level in 7 months as speculation about an earlier tightening in policy by the MPC took hold.

 

Physical Markets:

 

Brazil: – Brazil's decision to increase government-held coffee stocks in response to plunging world prices for the commodity is correct, the International Coffee Organization Executive Director Robério Oliveira Silva said on Thursday.  The government has offered to buy 3 million 60-kilogram bags of coffee by selling options contracts in three different auctions, the first of which will be held on Friday. Brazil currently has about 1.6 million bags of coffee in its public stocks, according to crop supply agency Conab.

 

 

Colombia: Coffee flow starting to pick up in the lower areas. Most regions are optimistic as quality and yields of first arrivals seem very good. Weather has remained optimal and some good flowerings for next year’s mitaca crop have taken place in many regions.

 

India: Nothing much to report on the export front as the Indian Rupee stage a dramatic recovery of more than 7% in the last week which brought virtually all purchase and sales to a halt.

 

 

Indonesia: Some exporters, having increased their spot position, offering differentials below Vietnamese prices.

 

Kenya: Small auctions at the moment with steady prices. Some exporters are complaining that farmers are advised by local politician’s to hold coffee back so that the price will soar.

 

Tanzania: Prices fell at auction last week as supply increased, according to the TCB last Tuesday. “Overall average prices at the Moshi exchange were down by $3.04/50kg for mild Arabica, while Robusta were up by $3.09/50/kg compared to the last auction.”