function gtm_code() { ?>
+44 (0)20 7202 2620

Currency and the coffee market: November 17th 21st

As we at DRWakefield source coffee beans from many corners of the world, we take a keen interest in how different currencies from around the globe are performing in terms of value and in comparison to others, with our traders publishing analysis of this in their weekly round-up.
Between Monday November 17th and Friday November 21st, the value of the pound sterling fluctuated somewhat on the futures markets, reaching a high of $1.5736 in comparison to the US dollar, while in relation to the euro, it climbed to €1.2545.
However, these market highs were not the case for the whole five-day trading period, as they calmed down towards the end of the week.
Markit released its latest monthly Purchasing Managers' Index (PMI) during the week, looking at the condition of business, trade, job opportunities and other factors throughout global markets, which may have had an impact on the conversion rate between the euro and the US dollar.
Our traders call the findings of the reports "disappointing", but they said the euro "remains reasonably well supported" despite the PMI, with its value in comparison to the US dollar tending to stay above the $1.25 level throughout the week.
In the past few weeks, the traders have been keeping a close eye on the market value of the Japanese Yen as well, with this increasing slightly between the 17th and 21st, following comments from the country's finance minister Taro Aso. Prior to this, the US dollar to Japanese Yen conversion had hit a low of 117.37.
Looking at how market values affected a particular country, in Mexico, the premium for coffee from the nation's highlands fell somewhat significantly to 13.5 cents per lb from 19.5 cents per lb just one week earlier, marking its lowest point since January 2014.
This drop in value is being attributed to exporters clearing out their warehouses of old stock ready for the upcoming harvest.
One importer explained: "They're trying to get rid of what they have to make room for their new crop."
Photo credit: Thinkstock/millionsjoker