The coffee importer InterAmerican Coffee in Hamburg shared with us very interesting market reports. Here are the report for the different regions
Central/ South America
Brazil: Reports of a strike in the port of Santos have reached us over the last few days. Early last week port workers went on strike, but luckily without any major impact on port activity and coffee shipments. Now we hear that local truck drivers have joined forces and block the entry to the main container terminal, resulting in some congestion as containers got stuck. Rumours say that some shipments may have to be re-scheduled to be shipped from Rio de Janeiro if the situation cannot be solved in due course.
Colombia: The main crop is over and there are still some weeks to go before the start of the fly crop. First mitaca crop coffees are expected to show up middle of March and volume is expected to be in line with last year ́s crop, which despite having been below average, has been a good one overall. Weather conditions continue to be positive for the crop development with sunny days and sporadic rains. This is important for the maturation process and consequently good flowerings for the next main crop.
A national coffee farmers strike has been reported as coffee producers protest against the low coffee prices and demand a higher internal price, arguing that the current price is below the actual production costs. Protesters have gathered at various coffee towns and blocked several roads throughout the country to put pressure on the Government. Differentials have firmed as the flow of coffee has almost come to a standstill.
Peru: Peru has joined the long list of producing countries across Central America that report about the spread of roya, or leaf-rust. According to Peru ́s National Coffee Chamber, the coffee disease is likely to spread across the producing regions and might affect 40 to 50% of the plantations. It however remains to be seen to which extent the crop size will ultimately be affected as this is yet too early to assess.
Kenya: The early crop is developing well with the harvest due to begin end of April. The weather conditions are good, sunny and dry with temperatures reaching up to 30°C. The differentials for Kenyan coffees continue to be very volatile. On Monday 04 March Kenya will hold its presidential elections, which is why there will be no auction next week.
Tanzania: New crop 13/14 is developing well. Output in the North and South of Tanzania should be of average size. It is mainly dry, only some parts in the South have reported rainfalls.
Indonesia: Robusta exports in February from Sumatra have been significantly higher than last year according to government trade data as producers took advantage of the higher market price and released coffee that they were holding back before.
Terminal market New York (Arabica):
NY ́C ́ (basis May ́13) traded at 143.20 USct/lb as per yesterday ́s close. Most of the trading this week took place in the low 140s. The latest Commitment of Traders report showed that the specs had further increased their shorts, resulting in a record overall short position of just under 40,000 lots. The lack of fundamental news that could drive the market on the short term meant that traders closely followed the news from Brazil and Colombia to find indications of the price direction.
Liffe Robusta (basis May ́13) traded at 2108 USD/MT as per yesterday ́s close. Focus has been on the March contract this week as we were approaching FND today with a significant open exposure still to be sorted out. New gradings continue to come into the exchange warehouses. Certified stocks are significantly up.