02. 12. 2012

COFFEE MARKET NEWS 8th - 12th March 2010

Futures Markets:

Arabica : Prices were range-bound this week as action switched to the currency markets. Other commodities were more volatile with Sugar down 30% from recent highs.

Robusta : On Monday 8th March London Robusta Prices for the second month (in this case May-10) closed at the lowest levels since 27 July 2006.

Currency : coffee were steady in early trade, pressured by a firmer dollar against a basket of currencies. Another negative factor for sterling was a Moody's report saying Britain faces a difficult balancing act in deciding how and when to cut support for the banking sector, given growth in the public debt burden.

Futures and Currency close levels:

Monday

Tuesday

Wednesday

Thursday

Friday

NY May-10 c/lb

131.10 (+0.70)

132.75

132.75

133.75

132.50

Lon May-10 $/t

1222 (-10)

1245

1233

1237

1227

£/$

1.4987

1.4988

1.4959

1.5060

1.5131


Physical Markets:

Colombia : Vietnam continues to occupy Colombia's long held, but recently lost, spot as second largest coffee producer in the world, figures released by the countries' coffee exporters show. Brazil remained the world's largest coffee producer, but, despite increasing its global market share from 29% to 32%, saw its profits go down 10%. Vietnam produced 18% of all coffee traded in the world. Colombia produced 8%. Colombian coffee exports fell in 2009, due to an expensive peso (against the US Dollar) and a disappointing harvest caused by bad weather. In addition there is an on going program to replace old trees with younger plants, all factors that have driven up premiums on its Arabica beans. Colombian exporters advise that the price of Colombian coffee will normalize throughout the year. (Taken with a pinch of salt) Colombia's coffee production fell to 650,000 bags in February, compared with 868,000 bags last year, but output is steadily recovering, according to the head of the coffee growers federation.

Tanzania : The auction programme is drawing to a close with only 4,000 bags on offer last week.

Kenya : prices remain very firm indeed. This is the end of the main crop and local shorts have pushed prices into the stratosphere.

Uganda : According to local reports, landslides in Uganda's coffee-growing district of Mbale have killed at least 50 people, In addition to that hundreds of people were missing after homes were washed away in Bududa district. Mbale is the leading coffee producing region in eastern Uganda. People living on mountain slopes have been asked to leave the area, Uganda's Ministry of Disaster Preparedness said. People living in low-lying, flood-prone areas have also been asked to leave. Uganda has had above-normal rainfall this year and heavy rains are expected to continue up to May, according to forecasts from the country's weather agency.

Vietnam : Vietnamese companies have started buying coffee on the domestic market under a plan to stockpile 200,000 tonnes for nine months to shore up prices that dropped again this week, an industry official said on Tuesday. The plan by the world's second-largest exporter after Brazil is aimed at keeping off the market one fifth of Vietnam's coffee output to boost prices, which on Tuesday revisited an eight-month low last seen in late February.

ICO : The International Coffee Council met in Guatemala City from 2 to 4 March 2010 Enhancing the potential of Robusta gourmet coffee production with the participation of Angola, Tanzania and Uganda for submission to the Common Fund for Commodities.

USA Starbucks customers can join Conservation International (CI) to help protect forests and the life that exists within them - as well as fight climate change. Starting March 9 and through December 31, 2010, every time a customer pays with their new Conservation International Starbucks Card at participating stores in the U.S., Starbucks will donate five cents to CI to help protect forests. The five cents donated by Starbucks with each purchase will provide contributions to support CI's work to protect and restore forests, essential steps to addressing climate change.

UK : Pubs should consider Fairtrade coffee to boost their sales wrote in the Morning Advertiser, Tom Fender a sales and marketing director at him!, a research-based retail consultancy. McDonald's and Starbucks base many of their campaigns on food-sourcing ethics, highlighting locally-sourced products and Rainforest Alliance-certified coffee. Fender pointed out that pubs could adopt a similar approach, rather than basing promotions solely on meal-deals and price. He also suggested that pubs may wish to consider setting up a coffee-to-go offer. Reports indicate that 37 percent of pub customers think a good cup of coffee is an incentive to use a pub, but only 32 per cent of licensees say they have a coffee machine.

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