Page 2 - MEX Express - Vol 15

www.mexnepal.com FACTS AND FIGURES Volume: 5 • Issue: 3 • Year: 2013 A.D

Market Capitalization - Futures Contracts Know Your Commodities
From July 2013 - Septemer 2013 (in %)
Coffee
Market Capitalization - Spot Contracts
From July 2013 - Septemer 2013 (in %) Coffee, a soft commodity in current - Mexico - Nicaragua - Panama - Papua TOP TEN LEADING PRODUCING
commodity market, was initially discovered New Guinea – Philippines - Rwanda - Sierra COUNTRIES IN 2011/12
in the 7th century and is now being produced Leone - Tanzania - Thailand - Timor-Leste -
by more than 70 countries globally. Coffee Togo - Uganda - Vietnam - Yemen - Zambia Countries Production % share of
is also regarded as one of the important - Zimbabwe (in thousand bags) world total
commodity and popular beverage where over Brazil
2.25 billion cups of coffee are consumed in Major Importers Vietnam 43484 32.4
the world every day. Indonesia 24058 17.9
European Union (Austria, Belgium, Colombia 8620 6.4
The major types of coffees that can be Bulgaria, Cyprus, Czech Republic, Denmark, Ethiopia 7653 5.7
found at international markets are Robusta Estonia, Finland, France, Germany, Greece, Honduras 6008 4.5
and Arabica, with the latter one believed to Hungary, Ireland, Italy, Latvia, Lithuania, Peru 5705 4.2
be of better quality compared to Robusta or Luxembourg, Malta, Netherlands, Poland, India 5581 4.2
any other coffees. Arabica, having bitter taste Portugal, Romania, Slovakia, Slovenia, Mexico 5233 3.9
and fewer flavors, accounts for about 80% of Spain, Sweden, United Kingdom) - Norway Guatemala 4546 3.4
all coffee produced in the world considering - Switzerland – Tunisia - Turkey - United 3840 2.9
its popularity and demand internationally. States of America

Brazil is the global leader in coffee Fundamental Facts
production followed by Honduras,
Colombia and Peru and the lead producer • Weather is the prime factor that affects
has been producing almost one-third of all the price of coffee. Unfavorable weather
worlds’ coffee. Unprocessed or raw coffee conditions in major coffee producing regions/
are primarily supplied to multinational countries affects production, which eventually
companies like Procter and Gamble, Kraft, affect the prices.
Nestle, Sara Lee and other major related
industries globally. Similarly, US, Germany • Supply/Demand fundamentals
and Italy are the top coffee consuming
countries. significantly determines coffee prices. COFFEE Contract
Specification
Regarding trading of coffee at Similarly, any major changes in cropping
international arena in future markets, New
York and London are regarded as two major patterns as it is closely integrated with demand Name Coffee
hubs for trading. However, considering the
volume of coffee trading, New York Board of coffee, drastically impacts the prices. Symbol COF
of Trade (NYBOT) stands as a pioneer in
trade facilitator. • All the coffee in the world is grown Contract Size 2500
in the bean belt. The bean belt is the region
Major Exporters between the Tropic of Cancer and Capricorn. Unit Kilogram

Angola - Bolivia - Brazil - Burundi • Brazil and USA, being the major Price Quoted NPR/Kilogram
- Cameroon - Central African Republic producer and consumer of coffee respectively,
- Colombia - Costa Rica - Côte d’Ivoire - any major fundamental changes in these Trading Hours 00:00-00:45; 14:15-00:00
Cuba - Ecuador - El Salvador - Ethiopia countries significantly affect the prices of this
- Gabon - Ghana - Guatemala - Honduras - soft commodity. Contract Months Mar (H), May (K), Jul
India - Indonesia - Kenya - Liberia – Malawi (N), Sep (U) &Oct (V)

Major Market Movers for Coffee-Futures and Crude Oil-Spot

Coffee - futures Crude oil

230 8400
225 8200
220 8000
215 7800
210 7600
205 7400
200 7200
195 7000
190 6800
185

1/7/2013
17/7/2013
31/7/2013
2/8/2013
12/8/2013
21/8/2013
30/8/2013
16/9/2013
30/9/2013
2/7/2013
19/7/2013
31/7/2013
5/8/2013
29/8/2013
19/9/2013
30/9/2013
24/6/2013
28/6/2013

Note: News Note: News
Opening Price as of 1st July 2013 Opening Price as of 1st April 2013
Date Improvement in weather concerns Date Weaker job data in USA
1/7/2013 Return of the companies went at lower ends 2/7/2013 Pessimism spread throughout the energy market
7/7/2013 Decreased resistance level 19/4/2013 Strong demand of crude oil
31/7/2013 Strong technical bullish signal 31/7/2013 Rise in the oil inventory
2/8/2013 Exports up by almost 7% 5/8/2013 Decrease in the demand of the crude oil
12/8/2013 Warehouse stocks decreased 20/8/2013 US Federal Reserve Policy Meeting
21/8/2013 Increased demand due to the flexible import duties 29/8/2013 Stock reached 30-year high
30/8/2013 Closing Price as of September 30 2013 11/9/2013 Closing Price as of 28th June 2013
16/9/2013 19/9/2013
30/9/2013 30/9/2013

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