Weekly Report 21 - 25 June 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 14th – 18th June 2010
Futures Markets:
Arabica : coffee futures settled firmly up at the top of a high range during a very active week. During the week, Arabica prices advanced 5% after having jumped 11% last week, as funds and spec both covered shorts and initiated new long positions. Impressive volumes were seen early in the week however the markets calmed down significantly towards the end of the week.
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 Sep-10 c/lb
|
160.80 (-1.30)
|
160.50
|
160.25
|
168.75
|
168.90
|
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Lon Sep-10 $/t
|
1573 (+2)
|
1580
|
1591
|
1649
|
1691
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£/$
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$1.4758
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1.4914
|
1.4924
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1.4952
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1.4914
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Physical Markets:
UK : DRW is officially 40 years old. We spent the week at Olympia exhibiting at SCAE / Caffe Culture & World barista Championships – thank you to all who came round and introduced yourselves – great to match faces to names. We also thank you for attending our cocktail party.
Colombia :Brazil will grow a record 55.3 million 60-kg bags of coffee in the 2010/11 crop year, up 10.5 million bags from its previous crop, the U.S. Agriculture Department (USDA) forecast last WEEK. USDA estimated the coffee crop in Vietnam at 18.7 million bags, up 1.2 million bags from 2009/10. Indonesia was forecast to produce 9.6 million bags, up 450,000 bags from the previous crop. Colombia was forecast to grow 9 million bags, up 800,000 bags from the previous crop.
Kenya : Cold weather has slowed Kenyan tea and coffee production, forcing officials in east Africa's largest economy to lower their expectations for output in the vital sector. In addition, the Agriculture Ministry's permanent secretary, said tea production was expected to increase between 5 and 10% above 2009 levels, rather than the 15% previously anticipated.
Central America's coffee farmers fear more wet weather after a tropical storm could further damage their crops, potentially squeezing already tight global coffee supplies. Guatemala was hit by tropical storm Agatha at the end of last month, which killed about 160 people and knocked out roads and bridges. The storm followed a volcanic eruption that spewed ash on top-quality farms.
From London on a warm and sunny Summer morning.
Alok VOHORA
From London on a warm and sunny Summer morning.
Alok VOHORA