World coffee exports up 16% to 9.2 million bags: ICO

Global coffee exports in May rose by 16% to 9.2 million bags of 60 kg each on the back of increased demand, the International Coffee Organisation (ICO) said.

International exports of the brew in the year-ago period stood at 7.94 million bags, ICO said. 

According to ICO, world shipments in the first eight months of the coffee year (October 2010-May 2011) increased by almost 17% to 71.94 million bags as compared to 61.62 million bags in the same period of the previous year. 

The global body on coffee has pegged the world output of the brew in the current year at 133 million bags. 

ICO expects the coffee output in 2011-12 period at 130 million bags, while the United States Department of Agriculture (USDA) in its recent report has forecast the global production at 135 million bags.

SOurce: http://www.business-standard.com/india/news/world-coffee-exports16-to-92-million-bags-ico/139978/&tp=on

Copper May Climb on Reduced Concern Greek Debt Default Might Affect Banks

Copper may rise in New York, narrowing this quarter’s drop, on reduced concern that a Greek debt default might destabilize banks after lawmakers approved austerity measures.

Greek Prime Minister George Papandreou yesterday won enough votes to pass the first part of a plan aimed at meeting European Union aid requirements. He still must win a second ballot today. Copper, set to climb for a first month in four, also may gain as a weaker dollar spurs demand for commodities as an alternative investment.

The vote “gave a bit of support to the market,” said Nick Riley, head of London Metal Exchange sales at Marex Financial Ltd., one of 12 companies on the LME floor. “The euro is obviously quite strong against the dollar. The dollar weakness is also helping the commodities.”

Copper for September delivery advanced 1 cent, or 0.2 percent, to $4.234 a pound by 7:54 a.m. on the Comex in New York. Prices reached $4.262, the highest level since May 3. Copper for three-month delivery slipped 0.1 percent to $9,315 a metric ton on the LME.

The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, declined as much as 0.6 percent, sliding for a fourth day. A weaker dollar also makes metals priced in the currency cheaper in terms of other monies.

‘Strong Vigilance’

The euro climbed on prospects the European Central Bank will raise interest rates next week to curb inflation after an increase in April. ECB President Jean-Claude Trichet said this week policy makers are in “strong vigilance mode,” signaling higher borrowing costs.

An ECB rate increase may further weaken the dollar and would be “positive” for metals, Marex’s Riley said.

A report due tomorrow may show manufacturing cooled this month in the U.S., according to economists surveyed by Bloomberg News. Separate figures may reveal a slowdown in Chinese manufacturing in June, another survey showed. The countries are the world’s two biggest copper consumers.

“Questions still remain about the health of the U.S. economy and whether Chinese growth will continue at its previous pace,” Royal Bank of Canada Europe Ltd. said in a report today.

The Federal Reserve’s second round of so-called quantitative easing concludes today. The Fed plans to buy between $4 billion and $5 billion of notes due from December 2016 to June 2018. The purchases will be the last in the central bank’s effort to add $600 billion to the economy, according to its website.

Comex copper is down 1.7 percent for the second quarter, on course for a second straight drop. Prices are up 1.4 percent this month, reducing the metal’s slide in 2011 to 4.8 percent.

Nickel for three-month delivery on the LME gained 0.5 percent to $23,200 a ton after reaching a four-week high of $23,395. Inventories monitored by the exchange fell to 107,148 tons, the lowest level in almost two years.

Source: http://www.bloomberg.com/news/2011-06-30/copper-reaches-eight-week-high-on-reduced-concern-about-greek-debt-default.html

Copper trades lower on reduced offtake

New Delhi, Jun 30 (PTI) Copper prices declined by Rs 2 per kg in the local non-ferrous metal market today due to reduced offtake by stockists following decline in demand at prevailing higher levels.

In the national capital, copper wire scrap, copper wire bar and copper mixed scrap were down by Rs 2 each to Rs 503, Rs 526 and Rs 486 per kg, respectively.

Following were today''s quotations in Rs per kg:

Tin ingot 841, zinc ingot 130.50, nickel plate (4x4) 1,043-1,045, gun metal scrap 226 bell metal scrap 228, copper wire scrap 503, copper wire bar 526, copper mixed scrap 486, Utensil scrap 224, Chadripital 175.

Lead ingot 141, lead imported 144, aluminium ingots 110, sheet cutting 111, aluminium wire scrap 110 and aluminium utensils scrap 107.

Source: http://in.news.yahoo.com/copper-trades-lower-reduced-offtake-094900152.html

MCX Copper may outperform the base metal pack

AHMEDABAD (Commodity Online): Copper at Multi Commodity Exchange rose for a third uninterrupted session Thursday, buoyed by constructive sentiment after Greece's parliament approved a five-year austerity plan.

On Thursday, Mcx Copper August delivery contract rose by 0.57 percent to 422.75 rupees per Kilogram.

In ongoing week, Copper future outperform compared to other Industry metals. Industry metals track the positive momentum of Copper future and stays higher from last 3 days.

Copper yesterday traded with the positive node and settled 2.1% up, helped by a softer dollar and as market sentiment improved on confidence that Greece's government will pass an austerity plan to save the country from bankruptcy.

Amrita Mashar, Analyst with Commodity Online stated that Copper looks strong bullish for coming weeks due to improved industry demand and fresh buying for metals. One can buy Copper near 410-12 for target near 430 with stop loss of 402.

Source: http://www.commodityonline.com/market-movers/MCX-Copper-may-outperform-the-base-metal-pack-June%2030,%202011%2015:00:00-3-3759-3-1.html

Global coffee production estimated at 135 million bags: USDA

New Delhi, June 30 (PTI) World coffee production in 2011-12 season is estimated at 135 million bags of 60 kg each on the back of record output of robusta in Brazil and Vietnam followed by a recovery inColumbia, a USDA report said.

"World coffee production for 2011-12, is forecast at 135 million bags, down just 2.9 million bags as Brazil enters the off-year of the biennial arabica production cycle," United States Department of Agriculture (USDA) report said.

According to the International Coffee Organisation (ICO), the global body on coffee, output of the brew in the 2011-12 season is estimated at 130 million bags.

Robusta crop in Brazil is expected to jump by 1.8 million bags to a record 14.5 million bags on account of favourable weather and good crop management, while the arabica crop is estimated to drop by 7.1 million to 34.7 million bags, during the off-year of the biennial cycle, the report added.

The production of the brew in Vietnam is expected to increase by 1.9 million bags to 20.6 million bags on the back of timely rains that resulted in good flowering and fruit setting, USDA said.

Columbian coffee output is expected at 10.5 million tonnes on account of high prices and government support encouraging farmers, but the crop is short of the five year average of 11.8 million bags due to shortfalls caused by coffee rust and coffee cherry borer, it added.

However, coffee output in India in 2011-12, is expected to decline.

"India is forecast to slip 3,00,000 bags to 4.8 million bags (about 2.88 lakh tonnes) because robusta areas experienced uneven rainfall during the bloom period, which is expected to lower yields," USDA pointed out.

According to the officials in the Coffee Board of India, output is estimated remain flat at three lakh tonnes in the 2011-12 season.

Source: http://www.google.com/reader/view/?tab=ny#stream/user%2F11666529776595833398%2Flabel%2FCopper

METALS-LME Copper steady on hopes Greek austerity bill will pass

* Investors still bet on Greece passing austerity bill

* Opponent of the Greek austerity bill backtracks, boosting sentiment

* Data shows continued post-disaster recovery in Japan

* Coming up: Eurozone business climate, econ sentiment, June; 0900 GMT

(Updates prices, adds quotes and details)

By Carrie Ho

SHANGHAI, June 29 (Reuters) - LME Copper steadied on Wednesday as investors continued to bet that the Greek parliament will pass an unpopular austerity plan later in the day and bring respite from worries that a sovereign default by the country would affect other debt-laden euro zone nations and roil global markets.

Three-month copper on the London Metal Exchange ticked up 0.4 percent to $9,109.25 a tonne by 0701 GMT after it rose 1.1 percent in the previous session.

"We are seeing prices of most commodities lifted across the board as optimism over Greece comes to a head on the back of the expected vote that the austerity program will be put through. The U.S. dollar is slightly weaker as well," managing director of Commodity Broking Services Jonathan Barratt said.

The most-active September copper contract on the Shanghai Futures Exchange closed nearly 1.4 percent higher at 68,080 yuan per tonne.

"Shanghai copper is less sensitive to international developments and continues its technical rebound within a range of 66,800 to 68,300 yuan," said Minmetals Futures Co analyst Yu Ye.

"There is no sign of a turning point that can propel it to a higher range even though fundamentally, demand in China remains steady. In the short-term, I see Shanghai copper moving to the upper portion of the range," she added.

Prospects that Greece would pass an austerity package needed to avoid sovereign default improved on Tuesday when a key deputy of embattled Prime Minister George Papandreou added his support.

A deputy from Papandreou's ruling Socialist party backtracked and said he would support the five-year plan of budget cuts, tax rises and privatization, vital for Greece to win EU/IMF funds in July needed to pay its debts on time.

But the bill remains deeply unpopular. Greek riot police with teargas and batons fought hooded youths near parliament on Tuesday as violence broke out at an anti-austerity rally.

Hopes that Greece would pass the austerity plan pushed Asian shares higher, with Tokyo stocks hitting a seven-week high, and the euro steady on Wednesday.

U.S. data on Tuesday were mixed: home prices showed signs of leveling off in April but worries about unemployment pushed consumer confidence to a seven-month low in June.

Japan's industrial output jumped 5.7 percent in May, rising at a much faster pace than in the previous month, government data showed on Wednesday, as companies make steady progress in restoring supply chains hit by the devastating earthquake in March.

Data on Wednesday showed that Japanese refined copper exports to China inched up 0.8 percent in May from April, with China's share improving to 36 percent from 29 percent in April.

But the May total export figure plunged 52 percent to 23,764 tonnes from a year ago, an eighth straight month of year-on-year declines.

Japan's refined zinc exports for May fell 32 percent from a year earlier to 5,905 tonnes, narrowing from April's year-on-year drop of 40 percent, finance ministry data showed on Wednesday, partly reflecting a recovery in production.

Base metals prices at 0701 GMT
 Metal              Last       Change   Pct Move YTD pct chg
 LME Cu            9109.25     36.75     +0.41     -5.11
 SHFE CU FUT SEP1    68080       910     +1.35     -5.25
 LME Alum          2528.00      8.00     +0.32      2.35
 SHFE AL FUT SEP1    17100        55     +0.32      1.54
 HG COPPER JUL1     411.75      2.55     +0.62     -7.25
 LME Zinc          2274.25     -0.75     -0.03     -7.32
 SHFE ZN FUT SEP1    17475       115     +0.66    -10.27
 LME Nickel       22865.00    185.00     +0.82     -7.62
 LME Lead          2594.00      9.00     +0.35      1.73
 SHFE PB FUT         16975        45     +0.27     -7.85
 LME Tin          25375.00      0.00     +0.00     -5.67
 LME/Shanghai arb     811
 
 Shanghai and COMEX contracts show most active months
 ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
 third month
 Shanghai lead launched on March 24
	
 (Editing by Ed Lane)	
Source: http://af.reuters.com/article/metalsNews/idAFL3E7HT06O20110629

India: Copper futures rise on global cues, spot demand

Copper prices rose by Rs 1.25 to Rs 407.60 per kg in futures trade today on fresh buying by traders, tracking a firming trend in base metals overseas.

Trading sentiments bolstered after copper climbed in overseas markets on optimism that Greece will be able to pass an austerity package needed to secure more financial aid and prevent a default on its debts.

At the Multi Commodity Exchange, June contract for copper rose by Rs 1.25, or 0.31% to Rs 407.60, with a business turnover of three lots. Similarly, August contract gained Rs 1.25, or 0.30%, to Rs 412.25, with an open interest of seven lots.    

Market experts said fresh buying by traders in tandem with a firming trend in overseas market mainly pushed up copper futures price.

Increased demand in the spot market from consuming industries further fueled the uptrend, they said. Meanwhile, copper for three-month rose 0.5% to $9,119 a tonne on the London Metal Exchange.

Source: http://www.business-standard.com/india/news/copper-futures-riseglobal-cues-spot-demand-/139709/on

Copper price gains 1pc as US dollar weakens

COPPER futures rose today as a weaker US dollar supported the metal amid some lingering uncertainty about Greece's debt crisis.

The most actively traded contract, for July delivery, settled up US4.05 cents, or 1 per cent, at $US4.0920 a pound on the Comex division of the New York Mercantile Exchange.

Copper futures were supported by a weaker US dollar and rose along with equities, gold and crude oil.

The euro was recently up at $US1.4347, from $US1.4283 late the in previous New York session. A weaker greenback can cause copper to appear cheaper for buyers holding foreign currencies.

Greece's parliament is set to vote on a five-year austerity plan tonight or early Thursday (AEST), another step the country is taking to qualify for further financial aid from euro-zone members.

Protests in the country turned violent ahead of the vote, however, as Greeks rallied against tax increases and other proposals by the government to alleviate the debt crisis.

Copper traders worry about slower economic activity in Europe affecting demand.

asStill, Europe isn't as important to prices as China, the leading copper-consuming country. Everyday products like smartphones and cars are made with copper, and demand for these goods can drop when the economy slows.

Meanwhile, data showed US consumer confidence dropping to a seven-month low in June.

The Conference Board's index of consumer confidence declined to 58.5 this month, after dropping more than 4 points to 61.7 in May, the private research group reported. Economists surveyed by Dow Jones Newswires had expected the index to reach 60.5.

The copper market is looking at higher demand to come from China, said Bob Haberkorn, senior market strategist with Lind-Waldock.

Source: http://www.theaustralian.com.au/business/markets/copper-price-gains-1pc-as-us-dollar-weakens/story-e6frg91x-1226083871166

Kenya Offers 19,000 Bags of Coffee as Sales Resume After a Two-Month Break

Kenya plans to offer as many as 19,000 50-kilogram (110-pound) bags of coffee for sale tomorrow when auctions restart after a break of more than two months, the Nairobi Coffee Exchange said.

That compares with about 12,100 bags offered at the previous auction on April 19, David Mureithi, the exchange’s acting chief executive officer, said by phone today from the capital, Nairobi.

The quality of the beans being sold tomorrow is better than at the last sale because of new production from Kenya’s eastern region, Mureithi said. Kenya started its traditional break in coffee sales earlier than usual this year due to low supplies.

Kenya is trying to help small-scale farmers revive output, which dropped from more than 100,000 metric tons in 1988-89 because of a slump in global prices and farm mismanagement.

The East African nation may produce 40,000 tons this season, James Wahome, quality manager at the Coffee Board of Kenya, said on Jan. 17. Kenya produced 45,000 tons last year.

Farmers in Kenya harvest the bulk of their crop from October through December, while a secondary crop is reaped from April to June.

Source: http://www.bloomberg.com/news/2011-06-27/kenya-offers-19-000-bags-of-coffee-as-sales-resume-after-a-two-month-break.html

Vietnam June Coffee Exports Forecast at 80,000 Tons

Vietnam, the world’s biggest producer of robusta coffee, may export 80,000 metric tons this month, according to figures released today by the General Statistics Office in Hanoi.

The nation exported 98,000 tons in May, 11 percent lower from a previous assessment of 110,000 tons, revised figures from the Statistics Office show. Exports in the first half of the year were estimated at 878,000 tons, up 29 percent from a year earlier.

Source: http://www.bloomberg.com/news/2011-06-27/vietnam-june-coffee-exports-forecast-at-80-000-tons.html

Burundi Coffee Production May Drop 13% This Year Amid Decreased Plantings

Coffee production in Burundi, which relies on the crop to generate more than half its foreign- exchange earnings, may drop 13 percent this year amid declining plantings, the Burundi Coffee Regulatory Agency said.

Output may fall to 21,000 metric tons from 24,000 tons in 2010, Pascal Girukwishaka, technical director of the Bujumbura- based agency, said in an interview yesterday. Production is declining amid a growing scarcity of land for the country’s increasing population and a lack of labor to help farm the beans as people leave rural areas to seek employment in the nation’s cities, he said.

“Our coffee is so appreciated for its taste and we are afraid we cannot meet demand,” Girukwishaka said.

Burundi grows mainly the arabica variety of coffee. Arabica for September delivery fell 0.75 cent, or 0.3 percent, to $2.462 a pound on ICE Futures U.S. in New York yesterday. Prices of the beans have surged 56 percent over the past year. Burundian coffee exports increased to 361,217 60-kilogram bags from May 2010 to April 2011, compared with 138,872 bags in the same period a year earlier, according to data on the website of the International Coffee Organization.

This year’s crop has been helped by “good rains” and government efforts to boost soil fertility, Girukwishaka said, without providing details. Of the 21,000 tons of coffee expected to be produced this year, 12,000 tons will be “fully washed,” he said. Washing coffee involves processing the beans in water.

Last month, the company that manages washing stations in the East African nation, known as Sogestal, increased the amount it pays farmers for their beans by 29 percent to 630 Burundian francs (51 cents) per kilogram (2.2 pounds).

Girukwishaka said a survey conducted last year showed that 600,000 households in Burundi are involved in coffee production.

Source: http://www.bloomberg.com/news/2011-06-23/burundi-coffee-production-may-drop-13-amid-decreased-plantings.html

Coffee exports set to cross R4,000 cr

Bangalore: India’s coffee exports are expected to cross the R4,000-crore mark in the current crop year, ending September thanks to the higher prices of the commodity in the international market.

According to statistics available with the state-owned Coffee Board, the country’s coffee export revenue increased by 90% to R3,610 crore during October to June 15 from R1,895 crore recorded in the same period a year ago. In dollar terms, it climbed to $789 million from $ 395 million during the period.

The volume of shipments jumped to 2.70 lakh tonne from 1.86 lakh tonne during the period. The unit value of the commodity increased to R1.33 lakh per tonne from R1.01 lakh for the same period.

In India, the crop year for coffee cultivation runs from October through September. For the current season, the planters have completed the harvest of both Arabica and Robusta. The exporters have already shipped more than 80% of harvested Arabica in the current season.

A Coffee Board official said the export revenue for the previous crop year stood atR2,754 crore. “We have already surpassed last year’s figure. With two more months left for the next crop year to commence, the shipments will increase as the exporters will clear their stocks on the back of prevailing higher prices for their commodity.

According to International Coffee Organisation (ICO) composite indicator price, the annual average coffee price for the year 2010 stood at 147.24 cents per pound. From January this year, the monthly average price of the commodity started increasing at alarming levels. From 197.35 cents in January, it increased to 231.24 cents in April. In May, the prices marginally declined to 227.97 cents but the exports says it will not go below 200 cents in near term.

Source: http://www.financialexpress.com/news/coffee-exports-set-to-cross-r4-000-cr/806818/0

Coffee rebounds, sugar up as Greece worries abate

* Arabica faces strong bearish momentum - Mizuho

* Cocoa supported by tight supplies in 2011/12-dealer (Recasts, updates prices, market activity)

By Rene Pastor and Sarah McFarlane

NEW YORK/LONDON, June 21 (Reuters) - Coffee futures rose on Tuesday, rebounding after tumbling to near a five-month low in the previous session, with cocoa also getting a lift as investors grew less worried about the possibility that Greek might default on its sovereign debt.

Raw sugar futures ended at a fresh 2-1/2 month top as late investor buying offset early profit-taking and producer sales, with the market unable to race past the 200-day moving average at 27.59 cents, analysts said.

New York's September arabica futures increased 0.65 cent to settle at $2.4695 per lb. London's September robusta contract went up $20 to finish at $2,296 per tonne.

"We're seeing a bit of a technical bounce ... particularly in coffee," said Country Hedging Inc analyst Sterling Smith.

The outlook for coffee, though, is for further losses going forward, analysts said.

"With a (front month) peak at 306.25 cents per lb, almost as high as 1997's record 320.00, there is a possibility prices will plummet as they did in 1995 and 1998 after the last two massive spike highs," said Nicole Elliott, technical analyst at Mizuho.

"Bearish momentum is close to the strongest in a decade."

Brenda Sullivan, technical analyst at Sucden, said arabica futures broke down "below a potential neckline as well as breaking below the uptrend which has been in place since June 2010 (and this) open the potential for downside targets below $2.29 a lb."

Dealers said the technical outlook for the London robusta market differed from the weakness seen in New York arabicas.

"London coffee futures on a second-month continuation chart have not yet broken the uptrend from May 2010 and in fact could have some short-term support near $2,246 a tonne. This is a potential channel line for today," Sullivan said.

Arabica coffee futures tapped their lowest level in nearly five months, nearing the 200-day moving average at $2.393 per tonne, basis September.

It then reversed higher with a lift from the commodity complex as riskier assets became attractive again as Greece was expected to avoid a debt default.

SUGAR AND COCOA FIRMER

Sugar prices were mixed, with raws easing after hitting a 2-1/2 month top on Monday.

"The expected oversupply on the global sugar market of almost 1 million tonnes should prevent prices from returning to their highs of over 35 cents marked at the start of the year," Commerzbank said in a daily commodities note.

London's August white sugar futures rose $4 to end at $743.50 per tonne. New York's July raw sugar contract added 0.02 cent to close at 27.49 cents.

Cocoa also neared its 200-day moving average, which was just above the market at $3,055 per tonne, basis September.

The market remained stuck in the range it has held for the past five weeks and found a lift in fund buying and the weak U.S. dollar, dealer said.

New York's September cocoa futures rose $58 to end at $3,026 per tonne. London's September cocoa futures gained 27 pounds to close at 1,884 pounds per tonne. (Additional reporting by Marcy Nicoholson in New York; Editing by Lisa Shumaker and David Gregorio)

Source: http://www.forexyard.com/en/news/SOFTS-Coffee-rebounds-sugar-up-as-Greece-worries-abate-2011-06-21T181804Z

Coffee market may be fixed on wrong weather threat

Investors may be focusing on the wrong weather risk in allowing coffee prices to fall 10% over the last week to their lowest since January, a leading analysts has said.

Coffee prices set course on Tuesday for a fifth successive close, amid waning expectations for a frost in Brazil, the world's major producer – a weather event which has, in the past, proved devastating for crops and provoked large upswing in prices.

"Updated weather forecasts for Brazilian coffee production areas are calling for warmer and dryer weather, which continues to diminish the chances for a damaging freeze to this season's upcoming production," Terry Roggensack at Hightower Report said.

With frost fears fading, Rabobank highlighted that "expectations that supply will make it to the market, [which] have slowed commercial buying", at a time when harvest pressure often prompts a seasonal downswing in prices.

'Could spell trouble'

However, soft commodities specialist Judith Ganes said that the chances of a Brazilian frost were anyway "minimal, as in any given year". A march north by plantation owners to more tropical climes in recent years has cut the risk of frost.

"Where attention needs to be riveted is on the dryness that is impacting several Central American countries," she said, noting that the same high pressure ridge causing drought in Texas was keeping rain too out of countries further south, such as El Salvador, Guatemala, and Honduras.

"Farmers are worried that this could spell trouble for the 2011-12 crop, with some green beans already dropping to the ground in areas that should normally be drenched in rains at this time of year," Ms Ganes, at J Ganes Consulting, said.

"This could set the stage for continued tightness in mild arabica coffees in the season ahead."

Such a threat, during an "off" season during Brazil's two-year cycle of higher and lower production, meant coffee supplies could "easily become pinched against later this year", and that the "market is not out of the woods yet".

Vietnam acceleration?

The comments come amid reports that coffee production in El Salvador could fall by more than 20% in 2011-12.

However, caution by Ms Ganes over Vietnam - "which simply has not be able to see the strides in production that would have been expected" following strong growth in the 1990s – appeared at odds with forecasts from US Department of Agriculture attaches.

The attaches forecast that slow growth in production in 2010-11 would be followed by a 10.0% rise to 20.6m bags in output next season, thanks to "favourable" weather, and the incentive that high prices have given to farmers to invest in plantations.

Source: http://www.agrimoney.com/news/coffee-market-may-be-fixed-on-wrong-weather-threat--3283.html

Coffee sales drive Whitbread's growth

As hotel and restaurant group Whitbread reports a rise in first-quarter sales Graham Spooner, investment adviser at The Share Centre, explains what this means for investors:

"Whitbread reported a 9.2% increase in total sales for the 13 weeks to 2 June, with strong performances in Costa Coffee and Premier Inn driving the company forward. Total sales for Costa Coffee rose by 20.4% and by 8.1% for Premier Inn, offsetting weakness in the restaurant operations where a cut in consumer spending has impacted casual dining habits.

"Investors seeking growth will be pleased to see the company implementing its aggressive five year growth strategy, with 73 new Costa Coffee stores opened in the period and a further 300 units planned to open over the next year. Whitbread hopes investing in its stronger brands will win the company market share and as a result deliver good returns to its shareholders. 

"Early morning trading showed Whitbread's share price as the biggest riser on the FTSE 100 - a sign this update was well received by investors. This year the share price has drifted so we hope these growth figures will help to underpin the company at this lower level. We currently recommend Whitbread as a ‘hold' for investors."

Source: http://www.easier.com/91133-coffee-sales-drive-whitbreads-growth.html

International Coffee Organization Prices: June 13, 2011

                        Offer        Change

                         -----      ------

Colombian Mild Arabicas:

New York                 297.25       -0.50

Bremen/Hamburg           293.90       -2.50

Daily Weighted Avg       295.44       -1.58

Other Mild Arabicas:

New York                 285.38       -1.50

Bremen/Hamburg           280.87       -2.43

Daily Weighted Avg       282.67       -2.06

Brazilian Natural Arabicas:

New York                 253.25       -1.50

Bremen/Hamburg           256.82       -3.34

Daily Weighted Avg       255.96       -2.90

Robustas:

New York                 124.75       -0.33

Le Harve/Marseilles      120.27       +0.62

Daily Weighted Avg       120.99       +0.47

Prices in U.S. cents per pound from the International Coffee Organization

Prices are from the previous working day

Dow jones

Coffee output to dip next season - but not by much

World coffee production will fall in 2011-12 – but not by much, supported by Brazil, which is expecting a record harvest for what is an off-season in its two-year cycle.

Typically, world output suffers a notable decrease when Brazil, the top producer, enters its off-year, with the decline nearing 9m bags between 2006 and 2007, for example.

However, next season output will fall only some 3m bags from that in 2010-11 thanks to expectations of a bumper off-season crop in Brazil, the International Coffee Organization said.

At 43.5m bags, the Brazilian crop "is the highest ever recorded for an off year", the organization said. Brazilian farmers have attempted to reduce the production cycle through measures such as irrigation, fertilization and pruning.

The ICO's world estimate of a 130m-bag harvest in 2011-12 represents the second-higher output ever, after the current season's production.

Nonetheless, it is likely to fall - again - below consumption, which hit 134.0m bags in 2010 and which the ICO said "continues to grow steadily, despite the firmness in prices".

Better prospects

The organisation added that, besides Brazil, some coffee growing countries are "expecting increased production if climatic conditions remain favourable".

The current elevated coffee prices "will encourage improvements in the upkeep of coffee farms in many other countries despite increased production costs".

However, the ICO also forecast "further falls" in Indonesia's output, which continues to be dogged by the effect prolonged rains which interfered with flowering, besides testing the country's infrastructure.Indeed, Indonesia is widely expected to return to Colombia third place in world coffee producing countries.

Output in second-ranked Vietnam, which produced 18.5m bags in 2010-11, will likely "stagnate" next season, the organisation said.

Discount narrows

The forecast came as the ICO reported a rare fall last month in the physical price of arabica beans. In the case of Brazilian natural beans, the decline was the first in at least a year.

However, robusta beans continued to appreciate, by 3.9%, narrowing their historically large discount to arabicas, which are generally considered of higher quality.

On futures markets, arabica coffee for July delivery added 1.1% 267.95 cents a pound in New York.

London robusta beans, for July, eased 1.3% to $2,431 a tonne.

Source: http://www.agrimoney.com/news/coffee-output-to-dip-next-season---but-not-by-much--3250.html

Robusta experiences big month on futures exchange

Vietnamese robusta coffee had a big month on the London International Financial Futures and Options Exchange (LIFFE) in May, with most stocks managing to meet quality specifications.

LIFFE’s statistics show that 7,853 lots (equivalent to 78,530 tonnes), or 97 percent of the more than 8,050 lots of Vietnamese robusta coffee submitted for inspection last month, met the futures market’s specifications.

They also accounted for 73 percent of all robusta coffee from around the world.

In the period from October 2010 to May 2011, Vietnam exported 1.1 million tonnes of robusta, which is used mainly for blending, to become the biggest producer and exporter of this type of coffee.

Vietnam also exports around 25,000 tonnes of arabica coffee, which defines the aroma and taste of the beverage.

Source: http://english.vovnews.vn/Home/Robusta-experiences-big-month-on-futures-exchange/20116/127216.vov

Coffee bean sales strong despite rise in cost

MISSOULA- The perfect mixture of market factors is sending a jolt to the java world.

Missoula's Butterfly Herbs owner Scott Laisy has been with the business for 30 of its 39 years and said this price hike is quite significant.

"I've been informed of two different price increases in the past six months," Laisy said. "They involve speculation in the coffee commodities market, some crop failure and the value of the dollar."

Butterfly Herbs buys beans from about five different roasters on a weekly basis. Last November the shop sold an organic Bolivian blend for $11.55/lb. That same blend went up to $11.95/lb. in December and since March is selling for $12.65/lb.

Laisy said he has a hard time raising the prices.

"I actually stress on that when I have to do that, but it has worked well for us this time with doing these moderate increases that were absorbed fairly well by everybody," Laisy said.

Retailers are raising prices because roasters have had to raise theirs. Black Coffee Roasting Company in Missoula has only been in business a year, but has already had to make weighty business adjustments.

"We've certainly seen, not quite a double in price, but pretty close to a double in some of the beans we buy," Black Coffee Roasting Company co-owner Matt McQuilkin said.

With the cost of beans going up that much, roasters are feeling the heat. It leaves them no choice but to pass on the increase to retailers.

"We absorbed the price for six months of the cost of increasing beans, but then it got to a point where we just had to say, you know, we have to raise our prices," McQuilkin said. "After awhile if you don't increase your prices, you're just losing money."

Spokane's Cravens Coffee has done the same. Owner Simon Thompson said the last increase of this magnitude was in 1997, but the economy was stronger then.

"What makes this a greater challenge for every roaster is that you've got rising cost of goods in a struggling economy," he said. "That's what makes this unique."

But Cravens Coffee will not sacrifice coffee for savings. Instead, they will look to other parts of the business to streamline.

"Quality always prevails," Thompson said. "The worse thing we can do is start saying, ‘Okay, how do we buy cheaper coffee?' Because that's not who we are."

Even though coffee drinkers might not love the higher prices, they're willing to swallow the extra cost.

"I have seen no slow down in sales at all on coffee," Laisy said.

"Even if it keeps going up, I'm gonna still pay for it," McQuilkin said. "Because really, when you think about it, per cup, it's a pretty small price to pay."

Coffee addicts will pay what their charged to stay charged.

"It's the most affordable luxury in the world," Thompson said. "Unfortunately we cannot drink the best of champagne every day for breakfast, but you can drink the best coffee in the world every day."

"When I go to bed at night I dream about the cup of coffee that I'm gonna have in the morning," McQuilkin said.

While Butterfly Herbs has increased its whole bean prices, its coffee house menu remains the same. You can still get a bottomless mug of coffee for $1.

Source: http://www.kaj18.com/news/coffee-bean-sales-strong-despite-rise-in-cost/

Coffee prices up from wholesale to diner

LOS ANGELES, June 4 (UPI) -- Wholesale coffee prices have risen significantly this year, sending the price of a pound of coffee at the market or a cup at the diner up as well, dealers say.

A 1-pound can was selling for an average of $5.10 in April, the U.S. Department of Labor reported. That was up from $3.64 a year earlier.

"These are big increases -- and I don't think we're done with it," Phil Lempert, editor of the SupermarketGuru.com blog, told the Los Angeles Times. "We're going to see higher prices on coffee for a very, very long time."

Tim Castle, a coffee importer and expert, said prices are likely to rise faster at first in stores than in restaurants. He said restaurants often sell brewed coffee for four times what they pay for it, which allows them to hold the line on price increases for a while.

But even there, prices are going up. The Starbucks chain hiked prices for some of its drinks last fall and is planning a 17 percent increase in the price of coffee beans it sells retail in its coffee shops.

Experts say there are a number of reasons for the price increases. They include bad weather in many coffee-growing areas, which has cut down on the supply, while residents of developing countries like China are drinking more coffee, just as they are using more gas.

Read more: http://www.upi.com/Top_News/US/2011/06/04/Coffee-prices-up-from-wholesale-to-diner/UPI-21801307165643/#ixzz1OIFkWs4O