Weekly Market Report 29 March - 2 April 2010
COFFEE MARKET NEWS 29th March – 2nd April 2010
Futures Markets:
Arabica : A new wave of spec buying boosted all the commodity markets last week and induced fresh fund buying which pushed the coffee market to a two-month high.
Robusta : prices finished higher most days. Good size spec buying was generated as prices rose above the $1,350 area, triggering buy stops adding to the rally. Lack of producer selling exacerbated the move.
Currency : A weak dollar added support to the coffee market which continues to be pushed up by the tight supply situation. Differentials remained firm last week although dealers anticipated a slow week due to the Easter holidays. The US Dollar dropped as worries about the Greece situation eased following declaration from the Euro zone leaders backing the IMF aid plan.
Futures and Currency close levels:
|
|
Monday
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Tuesday
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Wednesday
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Thursday
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Friday
|
|
NY May-10 c/lb
|
138.15 (+2.30)
|
138.95
|
136.15
|
137.40
|
Closed
|
|
Lon May-10 $/t
|
1371 (+32)
|
1356
|
1356
|
1389
|
for
|
|
£/$
|
1.5098
|
1.5059
|
1.5179
|
1.5280
|
Easter
|
Physical Markets:
Brazil : exporters delaying shipments – we await the new crop with interest.
Colombia :In Colombia, the Mitaca crop will begin next week in several areas, however local dealers are not expecting to much available coffee for selling since large part is already committed.
Tanzania : local exporters are becoming active in Burundi – looking for alternatives
Kenya : prices continue to rise – how high can they go? Some of the bigger players are holding coffee for export in local warehouses.
Indonesia : Indonesia was Germany’s third largest supplier after Brazil and Vietnam, shipping about 84,000 tons of coffee in 2009. Over the past years, German coffee consumers have purchased Indonesian coffee such as Kopi Luwak, Toraja, Flores and Aceh-Gayo coffees. Indonesia is presently the world third largest coffee producer behind Brazil and Vietnam.
Vietnam :Last week, higher prices have encouraged sales from Vietnamese farmers who saw local prices rise to VND25,000 per kg from VND23,000 the previous week.
Consuming countries : Sara Lee Corp. announced today it has developed a new espresso capsule that is compatible with Nespresso machines. The new product, L’Or, will be available from the beginning of April.
Alok VOHORA
Alok VOHORA