02. 12. 2012

COFFEE MARKET NEWS 15th - 19th March 2010
Futures Markets:

Arabica : futures closed higher most days last week with sessions marked by light volume. A substantial retracement on Friday caused by short-term specs and external factors (currency and the general commodity complex).

Robusta : London continues to battle with overhead resistance. Chances of a break out to the upside seem limited. Activity has been subdued as origin focus on the Vietnamese plan to stockpile coffee, which awaits finance.

Currency : The Euro slipped, as analysts said a potential financial aid package for Greece would not be enough to ease overall sovereign debt concerns within the Euro zone. Gold rose to its highest in more than a week as a decision by the US Federal Reserve to hold interest rates unchanged hit the US Dollar. Sterling extended losses on Friday, falling 1% on the day against a broadly firmer Dollar. The Pound fell in tandem with the Euro, which hit a more than two-week low against the US$.

Futures and Currency close levels:






NY May-10 c/lb

131.05 (-1.45)





Lon May-10 $/t

1225 (-2)











Brazil : Reports from the State government of Parana estimate production in 2009 at 1.47 million bags, a decrease of 44% compared with 2.7 million bags produced last year, due mainly to the biennial cycle of the Arabica trees. The estimate for the 2010 crop is a growth of 41% in production, which could reach 2 million bags. According to weather forecaster Somar, coffee production in Brazil's main growing states is suffering from dry conditions which will prevent beans from swelling to their full potential size. A fortnight of dry conditions and rapid evaporation has reduced soil humidity to about 60%, only weeks after excess rains that had persisted for months finally ended. Somar also said coffee trees in the state of Espirito Santo had lost up to 20% of their production due to a long dry spell at the beginning of the year. It said the drought claimed about 10% of Robusta production.

Colombia : Differentials remain firm nearby, we are seeing offers and demand at these levels. Roasters need Colombian coffee despite the combination of high prices at origin and the weak Pound.

Peru : next crop is developing well, about 2 months to go before early harvest. Colombian traders are active in the North of the country hence differentials remain distorted.

Mexico : We have a shipment of Washed Chiapas EP about to be shipped, a good alternative to Colombian Excelso!

Honduras : Micro Lots, speciality grain pro bags all in high demand not just in the UK.

Guatemala and Costa Rica : Coffees well sought after replacing Colombians in blends.

El Salvador : According to reports from the Salvadoran Coffee Council (CSC), forward sales totalled 684,582 bags from the new 2009-10 crop to end of February, up 6.1% year on year. The average price of $1.4650 a pound was above the average $1.3112/lb recorded at this time last year.

Tanzania : Coffee has more or less sold out for the main crop. Robusta has all but disappeared.

Kenya : Prices continue to rise. The auctions remain firm with better cupping lots continuing to attract stiff premiums. One roaster asked us who is paying these high prices - our comment was 'the person who sold to you a few months ago'!

Uganda : Demand seen for Bugisu Arabicas from Mount Elgon, a decent cupping secondary mild Arabica

Indonesia : Quality has suffered recently due to unfavourable weather conditions.

UK : Whitbread Plc, Britain's biggest hotel and coffee shop operator has bought out its Indian Joint Venture partner Emaar Mgf. According to local media, Whitbread Plc has confirmed that its brand Premier Inn has completed the acquisition of the 50.1% stake it did not own in Emaar Mgf.

Other news : Singapore Exchange (SGX) said it would launch trade in a new Robusta coffee futures contract on April 22 to capitalise on Southeast Asia's top producing status for this commodity.