Coffee futures jump, as export tumble fuels supply fears

Coffee futures staged a strong start to September, attempting in New York to record their second highest close in more than a year, as data showing a slump in world exports crystallised concerns of tighter supplies.

 

Arabica coffee futures for December stood up 3.8% at 153.65 cents a pound in late deals in New York, a level which, if held to the close, would represent the strong finish for the contract, bar one, since May last year.

'Bullish as anything'

The gains were attributed in part to technical factors, with daily and, in particular weekly, charts on arabica deemed supportive to price.

"The weekly chart is bullish as anything. It is something to get excited about," Jack Scoville, at US broker Price Futures, told Agrimoney.com.

He also flagged talk of growing talk that a series of frosts in Brazil had wrought more damage on trees than originally thought - boding ill for prospects for a 2017 harvest which was already expected in arabicas to fall below this year's, given the country's cycle of alternate higher and lower producing years.

Most producers in major arabica-growing areas "talk of losses and that trade estimates are overstated", Mr Scoville said, adding that while "the industry has estimated the crop as high as 55m bags, but there are many doubters about this estimate.

 

"Some now talk of production for all of Brazil well below 50m bags," he said, noting talk of some plantations suffering notable frost damage.

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Sale 01 Sample Delivery Postponed due to Low Volumes

Kindly be advised that due to low volumes, sale 01 sample delivery has been postponed to Thursday, 28th Sept 2017. And the auction shall take place on Tuesday, 10th Oct 2017.

All dealers, Marketing Agents and the general coffee industry stakeholders are requested to take note.

Karen

Kenya's first-half coffee earnings fall 9 pct on lower volumes, prices

 

NAIROBI, April 11 (Reuters) - The value of coffee sold through Kenya's auction fell 9 percent to $85 million in the half-year to March due to lower volumes and prices, a senior official said on Monday.

The east Africa nation sold coffee worth $93.2 million in the first-half of the 2014/15 crop season that runs from October to September.

"The volume of crop was lower was in the first-half and this coupled with the price trend in New York reflected on the overall earnings," Daniel Mbithi, chief executive of the Nairobi Coffee Exchange told Reuters.

Kenya's coffee prices track those of arabica in New York.

Kenya, whose high-quality beans are sought by roasters to blend with beans from other producers, exports about 90 percent of its coffee through the exchange, and the remainder is sold to foreign buyers directly.

Officials said 324,585 bags of 60-kg each were sold in the six months to March compared with 328,401 the previous year.

 

The average price dipped to $214.51 per 50-kg bag from $232.4 in the previous year. East African coffee is normally packed in 60-kg bags but the prices are quoted for quantities of 50 kg.

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African coffee producers expect low prices

 

African coffee producers expect low prices on the world market in 2016 as high output from Brazil could hurt the prospects for any increase.

“Brazilian production is quite high for the coming season, so there is no shortage of coffee and therefore the market can’t support high prices,” Abdullah Bagersh, Chairman of the Africa Fine Coffees Association, said in an interview. “Could prices go lower? Yes, of course because we have seen lower prices than where we are now. So we cannot discount that the market cannot go lower.”

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Coffee price rebounds 10pc on high quality central Kenya beans

 

The price of coffee shot up 10 per cent in this week’s trading at the Nairobi Coffee Exchange (NEC) after a 14 per cent dip last week.

The increase was attributed to high quality beans that farmers and cooperatives supplied at the auction. In Tuesday’s auction, a 50 kilogramme (kg) bag was sold at Sh24,990 on average compared to Sh22,644 last week.

NCE chief executive Daniel Mbithi said the general demand for good quality coffee was evident with some lots selling at over Sh51,000 for the 50 kg bag.

“The auction witnessed increased demand for good quality beans and this is the main reason why the prices went up this week,” said Mr Mbithi.

The auction has been enjoying good prices since last month as the much-sought after high quality beans from central Kenya started trickling into the market. Harvesting of the main crop from the eastern part of the country came to an end last November.

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