Demand for Brazilian beans in Europe's cash coffee market was strong this week as roasters stepped in to cover their immediate needs, traders said. "People are buying hand-to-mouth," one trader said. "Buyers still have difficulties buying to cover their long-term needs, banks are hesitant to give loans and even if they can get loans, they are too expensive."
Differentials for Brazilian Swedish quality beans were unchanged on the week at 18 cents under New York's March arabica contract yesterday. This year's on-year crop in top producer Brazil's biennial cycle has meant the market is well supplied with arabica beans, which has put pressure on prices.
ICE December arabica coffee futures were up 1.50 cents or 1.0 per cent at US$1.5495 per lb yesterday. The contract hit US$1.5280 on Thursday, the lowest level for the front month since June 22. Coffee exports from Honduras rose 231 per cent in October, the first month of Central America's 2012-13 coffee season, to 59,111 60-kilogramme bags compared with the same month last year, the country's coffee institute, IHCAFE, said on Thursday.
Robusta coffee futures on Liffe crept higher yesterday with prices holding above a six-month low set earlier this week as the focus remained on Vietnam's crop, which is expected to be large but slightly below last season.
Reuters