Weekly Market Report 24 - 28 May 2010
THOMPSON HOUSE Ÿ 42-44 DOLBEN STREET Ÿ LONDON SE1 0UQ Ÿ ENGLAND
Tel: +44 (0)20 7202 2620 Ÿ Fax: +44 (0)20 7593 1366 Ÿ E-mail: trade@drwakefield.com Ÿ Website:www.drwakefield.com
COFFEE MARKET NEWS 24th– 28th May 2010
Futures Markets:
Arabica : Coffee, Sugar and Cocoa futures on ICE edged down on follow-through selling in early trade , pressured by a firmer dollar, while steady cash demand limited losses. In coffee many roasters are waiting for the new centre-south Brazil harvest to refill warehouses / silos, and they now find themselves bidding against each other to replenish their stocks.
Robusta : Market had an uneventful week, trading in thin conditions.
Currency : International forex markets stabilising somewhat, although the Euro still vulnerable to waves of speculative attacks as credit agencies down grade various sovereign debts.
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 Jul-10 c/lb
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132.25 (- 0.15)
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132.75
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133.70
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134.75
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134.25
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Lon Jul-10 $/t
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1330 (-4)
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1330
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1334
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1336
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1338
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£/$
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1.4434
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1.4376
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1.4397
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1.4576
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1.4463
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Physical Markets:
Brazil :World top coffee producer Brazil is imposing legally binding standards on the quality of ground, roasted coffee sold in its shops in a bid to help encourage consumption. Agriculture minister Wagner Rossi chose Brazil's "National Coffee Day," to sign a regulation which from Feb. 1, 2011, will do away with products that consistently score less than four out of 10 on a specified set of industry criteria.
Cold weather expected in the coffee areas on 1st & 2nd June, however no imminent threat of frost.
Cold weather expected in the coffee areas on 1st & 2nd June, however no imminent threat of frost.
Colombia : Midcrop production in the central regions is coming to an end. Coffee should be available from the South until mid-June. Trade discussing very low yields on the trees, which has reduced exports by 20%.
STOP PRESS : Costa Rica, Honduras, El Salvador, Nicaragua, Guatemala : We understand that some coffee areas have been affected by Hurricane Agatha. One of our suppliers has cancelled his visit to SCAE / Caffe Culture at the end of June to concentrate on repairing damaged infrastructure with the support of his neighbours as local government does not have the capacity to do this.
Guatemala : has most likely produced a smaller coffee harvest in the 2009/10 cycle, helping push up premiums for high-quality beans and raising concerns that major buyer Starbucks will shop elsewhere. With the 2009/10 harvest all but over, growers association Anacafe sees Guatemala's production for the cycle at 3.375 million 60 kg bags, down slightly from previous estimates of between 3.4 million and 3.6 million bags.
Tanzania : On track to deliver some top cupping Oldiani Estate coffees: Kiran and Kongoni farms – the first time they have been sold as single estate coffees in the UK.
Kenya : Auction program coming to an end, exporters settling into a lull. El Nino Rains now coming to an end
Uganda : Robusta available but producers asking very firm diffs indeed.
Vietnam : Vietnam's coffee exports this month rose 3.3 percent from a year ago to an estimated 95,000 tonnes, or 1.58 million bags, the government said on Tuesday. The shipments in May brought exports of the commodity in the first eight months of the crop year ending September 2010 to 840,600 tonnes, or 14.01 million 60-kg bags, down 5.3 percent from a year earlier, the General Statistics Office said.
Consuming Countries : USA : Late on Friday Kraft followed the lead of J.M. Smucker (owner of the Folgers brand) raising the prices of selected products. Citing sustained increases in Arabica coffee as well as related inputs such as crude oil and other costs Kraft raised prices of Maxwell House and Yuban roast and Ground by 4%, the equivalent of 10 cents per lb.
Dubai coffee company Coffee Planet LLC has announced a further extension to its business with complete access to its own coffee growing plantations in Central America through the Coffee Planet Corporation of Honduras. According to the Company’s managing director Richard Jones “This is a tremendously exciting day for us. It’s a dream come true to be sourcing our green coffee beans directly from our own plantations. Only by being in control of your raw product can you guarantee the quality of the end product that the customer drinks from their cup”. He said the company was “very proud” of its association with Honduras, believing that to trade fairly, companies need to be directly involved with farmers.
From London on a grey and damp morning after the Bank Holiday weekend.
Alok VOHORA