Weekly Market Report 23 - 27 August 2010
COFFEE MARKET NEWS 23rd – 27th August 2010
Futures Markets:
Arabica : - New York coffee futures on ICE eased after their biggest one-day fall in 2-1/2 years during Tuesday’s session, weighed by selling linked to a deteriorating global economic situation. Coffee futures collapsed by more than 8% as a technically overbought chart was combined with a flood of negative economic information led to a session of heavy investment fund liquidation across all major markets in an effort to place investments into ‘safe’ products such as the US Dollar and fixed income treasuries. Global equities fell to one-month lows, as existing fears over the speed of the recent economic recovery were aggravated by a report showing existing home sales in the US plunged by more than 27% (more than twice as bad as expected) to its lowest level 15 years.
In London, Robusta futures also suffered heavy losses on Tuesday. Volumes were grew as heavy sell stops were triggered as the market tumbled lower in early dealings amid thin volumes.
Futures and Currency close levels:
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Monday
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Tuesday
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Wednesday
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Thursday
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Friday
|
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NY Dec-10 c/lb
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183.25 (-1.80)
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168.45 (-14.80)
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166.60
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172.40
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178.85
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Lon Nov-10 $/t
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1777 (-14)
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1640 (-137)
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1591
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1597
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1637
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£/$
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1.5530
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1.5468
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1.5447
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1.5531
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1.5498
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Physical
Markets:
Colombia : The forthcoming second-half harvest may be one of the best in years. Output hit a three-decade low last year due to bad weather and tree renovation, Colombia is the world’s largest top producer of washed Arabica is forecast to have a harvest of 10 million bags in 2010, including a 6 million bag second-half estimate that most in the sector see as ambitious but achievable.
Mexico :Mexico will tie with India as fifth-largest coffee producer in the new season and Vietnam remains the second largest after Brazil, according to the U.S. Department of Agriculture.
Kenya :Researchers at Ruiru based Coffee Research Foundation in Kenya have developed a new coffee variety that is expected to achieve a substantial yield given its resilience to disease. The new coffee variety is known as Batian is quick to establish, producing results after 18-24 months upon being planted,
Uganda : exports fell in the first 10 months of the 2009/10 coffee year due to the long dry spell experienced at the critical stage of bean formation and development, according to the Uganda Coffee Development Authority monthly( report. According to the report Uganda shipped 1.6 million bags of robusta in the first 10 months to July, down from 2.1 million bags in the same period last year. UCDA cited factors affecting output such as coffee wilt disease and urbanisation reducing agricultural land.
India : Area under ‘certified' coffee is expected to increase by at least 7,000 acres in 2010-11, from the present level of about 50,000 acres. The robusta-growing Wayanad region in Kerala accounts for most of this year's increase in acreage under certified coffee.
Consuming nations : The slow, sad demise of the British pub is not letting up. To make matters worse for some, more branches of Starbucks and other coffee shop brands are filling the vacuum. A new café or restaurant will open in the U.K. for every pub and bar that closes over the next three years. And just to spell it out in numbers: Around 2,000 pubs and bars will shut by the end of 2013, while nearly 300 new cafes and 1,900 restaurants will spring up instead. British pubs are set to rake in $4 billion in revenue this year, but some pub operators just aren’t getting a big enough share of the pie. Last week the pub and restaurant group Mitchells & Butlers sold 333 pubs to the private equity firm TDR Capital for $583 million as part of its strategy to focus more on food.
Coffee Republic announced a new deal that will see their premium Italian Roasted coffee on sale at up to 450 Shell forecourts over the next 12 months. The new Coffee Republic 'To Go' brand will be the same blend as in cafes.
From London on a warm summer Morning.
Alok VOHORA