weekly report 23 - 27 November 2009
Futures Markets:
Arabica : coffee futures rose in early trade on light investor buying aided by a weaker dollar. Coffee futures settled firm on Wednesday ahead of the thanksgiving Holiday.
Robusta : There are signs that a floor for robusta prices may be approaching, with 2009-10 supply and demand looking more balanced, according to an analyst at Rabobank. A price floor “may not be too far away,” with a surplus of the beans expected to narrow to 2 million bags in the current season from 4.9 million bags a year earlier,” Prices may find support as roasters seek fresh beans from new harvests in Vietnam and Uganda,
Currency : The Dollar hit a 15-month low against a basket of currencies after Federal reserve minutes showed the US Currency’s recent decline as orderly. An announcement by the Russian central bank, which indicated their intention to immediately add Canadian Dollars to their reserves, drove the US dollar index to fresh new contract lows for December. The Euro, on the other hand, reached its highest level since August of 2008, at 1.5098 dollars per euro.
Futures and Currency close levels:
|
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
|
NY Dec-09 c/lb
|
136.30
|
136.15
|
138.90
|
Closed
|
137.95
|
|
Lon Jan-09 $/t
|
1348
|
1328
|
1340
|
1331
|
1332
|
|
£/$
|
1.6515
|
1.6723
|
1.6656
|
1.6536
|
1.6485
|
Physical Markets:
Brazil :Rain in Brazil's south-eastern coffee belt will turn much heavier in the next five days, bringing added moisture to the soil as next year's crop continues the early stages of its development. Minas Gerais, where about half the coffee in the world's top grower is produced, will see rains get gradually heavier over the weekend with 64 millimeters (2.5 inches) expected to fall in some parts of the state by next Monday.
Brazil's coffee farmers have committed to sell 1 million bags of coffee to the government after exercising options the state sold earlier this year. The government will pay 303.50 reais ($174.92) per bag of coffee that meets the quality grade specified in the contract.
Colombia : availability of coffee remains tight and several growing areas report that their biggest harvest weeks are now occurred. Local shorts are pushing up internal prices with export differentials now climbing again.
Honduras : Coffee is flowing again but internal market remain firm, and export differentials rising.
Guatemala : Export business is picking up with prices of premium grades climbing sharply.
Tanzania : coffee prices rose at the latest auction, lifted by a rush to meet futures commitments ahead of the Christmas break, traders said on Monday. State-run Tanzania Coffee Board said 19,127 60-kg bags were offered at the sale and 17,402 bags were sold. A total of 18,640 60-kg bags were up for sale in the previous auction, with 16,697 bags sold.
Kenya : No auction this week; next auction on 1st Dec with only limited quantities on offer.
Ethiopia : Offers for new crop, January shipments beginning to appear mainly for washed coffees.
Papua New Guinea : Weather has now changed and with the onset of rains road transport is thrown into chaos – very little coffee on offer.
Indonesia : October exports up 35% from last year.
USA : J.M. Smucker Co. reported higher-than-expected quarterly results, helped by 52% revenue growth and higher margins, both led by the acquisition of Folgers Coffee Co. In addition to that, the company said it saw volume of sales increase across much of its business.