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Arabica market finishes year on a low

by Staff Writer
January 11, 2016
in News
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The Arabica market finished 2015 as the worst performer of the major agricultural markets, Volcafe has revealed. Arabica finished 24 per cent lower, while Robusta fell 21 per cent from the year prior, according to Volcafe’s first January report. On trend with all but three agricultural commodities, which ended the year worse off, 2015 marked New York Arabica’s fourth negative year in the last five, and the tenth worst in 37 years. “The macro situation remains tenuous, with equities under tremendous pressure and origin currencies devaluing,” said Volcafe, in the report. Both the Colombian Peso and Brazilian Real have devalued more than two per cent since the start of the New Year. “Despite the price performance and macro turmoil, coffee still flows, with Brazilian export certificates suggesting December exports between 2.5 – 3 million 60-kilogram bags,” said Volcafe. Volcafe said the New Year started relatively active for Brazil, with higher prices to producers making daily trade volumes quite sizeable. Exports rose for both Colombia and Honduras too, with Volcafe estimating 13 per cent and 12 per cent increases on the month prior. Colombia is reported to have exported 1.19 million 60-kilogram bags in December. Honduras is said to be about to start a concentrated round of picking. Volcafe is expecting quality coffee from Kenya in this week’s auctions, with approximately 21,000 bags of predominantly late crop coffee expected to be available.

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