Coffee Market report 26th May to 30th May 2014

COFFEE MARKET NEWS 26^th May – 30^th May 2014

Coffee Prices, Futures and Currency close levels:

Futures Markets:

Arabica: Brazil crops reports are still very much “on the fence” –  which is turn is providing a volatile market. Last week’s market settlement levels were near enough the same as the week before  – 176.15 and 181.95, but the volatility during the days was more than double (~12 us cents) between 170.80 and 182.95.

Robusta: Robusta coffee exports in April were 4 million bags, up from 3.54 million in the same month last year. From the start of May-14 the LIFFE went down every single week from 2173 to 1937.

Currency: On the FX markets, the US dollar weathered the widely expected drop in Q1 GDP with EUR/USD trading around the $1.36 level yesterday. With no UK related economic releases, Sterling consolidated support with GBP/USD reaching a high of $1.6715 while GBP/EUR traded a high of €1.2288.

Physical Markets:

Brazil: output in the world's top grower Brazil is estimated at 50.5 million 60-kg bags in 2014/15, Mercon Group said in a report seen by Reuters on Friday. This is down 4.6 million bags from Mercon's estimate in December and is at the high end of estimates that have been made since Brazil's arabica growing region experienced a drought in January and February.

El Salvador: exports from El Salvador dropped by 50.3 percent in April compared with the same month last year due mostly to ongoing damage from the tree-killing fungus roya, the country's national coffee council CSC said on Monday. Shipments in April totalled 64,052 60-kg bags. "Many factors affect exports, but the biggest one has been the impact of roya," said a CSC spokesperson. Exports during the first seven months of the current 2013/2014 harvesting season reached 325,485 bags, also down by half compared with the same seven-month period during the previous 2012/2013 season.

Kenya: The top price of the benchmark Kenyan coffee grade rose by 5% per 50kg bag at this week's sale, from last week's sale, the Nairobi Coffee Exchange said on Tuesday. Global roasters use beans from the relatively small east African producer to blend with coffees of lower quality from other producing nations.

India: prices in India edged lower at last week's auction weighed by international markets and slack domestic buying.

Indonesia: Robusta coffee bean exports from Indonesia's main growing area in Sumatra fell 66 percent to 7,609.34 tonnes in May from a year earlier, government trade data showed on Monday. Indonesia shipped 22,588.86 tonnes of robusta in the same month a year earlier and 16,469.58 tonnes in April.