NY coffee prices extended declines for a fourth consecutive session yesterday to end the day at 152.65. This morning, coffee prices remained under pressure trading around 153.00. Short-term indicators suggest the potential for declines to falter near 150.00, which acts as immedi-ate support.

On the upside, a resumption of gains could retest the 10-day MA of 162.09 and the 40-day MA of 168.65. Resistance holds near January’s high at 187.40 and the key area of 200.00.

London coffee prices extended declines and fell sharply yesterday to end the trading session at 1990. This morning, prices remained under pressure trading below the 10-day MA strug-gling for direction. Short-term indicators suggest the potential for recent declines to falter near the 40-day MA of 1962.

On the upside, a correction higher could see gains retest February’s high of 2077 and the key level of 2100, while resistance holds near November’s high of 2112.

Arabica & Robusta Coffee Chart & Comments

Inside this issue:

Coffee Charts 1

Arabica Offers 2

Robusta Offers 3

Latam Report 4

Asia & Africa

Report

5

Futures Market 6

Market Report & Offer List

2 0 F E B R U A R Y 2 0 1 5 NY ICE: 149.20 London Liffe: 1957

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Special Offers

Costa Rica SHB EP

Supremo 17/18

1

Colombia Supremo 17/18

2

Guatemala Robusta

screen 15 up

3

China Simao Gr. 1 4

Vietnam Gr.1 Water

Decaf 5

Brazil Conilon 5/6 screen 13 up

6

P A G E 2

Arabica Coffee Shipments from Origin We are pleased to

present for your

consideration our latest

coffee offer list on Full

Container Load basis,

for lots of about 300

bags (18 MT) per origin/

grade. Price ideas are

both on outright and

differential basis against

NY ICE & LIFFE

future markets. Price &

stock availability are

subject to confirmation

and unsold.

In case you should need to combine several ori-gins/grades in one ship-ment, we will be deligh-ted to quote on FOT/FOB/CIF basis and arrange mixed contai-ners or combined palle-tized shipments of mini-mum 20 bags, from cof-fee stocks warehoused in the main European & US ports. Therefore do not hesitate to contact us with your enquiries or firm bids, on the pro-ducts listed below and/or any other origin or grade available on the international market. Rest assured we will do our outmost to meet your highest expectative. We wish you a pleasant and profitable day!

Bags Grade Delivery Differential Outright

1280 India Plantation A 17 up FOB - Cochin/Tuticorin NY ICE +38 c/lb -

1320 Brazil 17/18 NY 2 Fine Cup FOB – Santos/Vitoria/Rio - USD 168/50Kg

850 Brazil NY 2/3 MTGB SSFC FOB – Santos/Vitoria/Rio NY ICE - 7 c/lb -

275 Colombia Supremo 17/18 FOB - Buenaventura NY ICE +14 c/lb -

550 Colombia Excelso EP New crop FOB - Buenaventura NY ICE +10 c/lb -

1100 Nicaragua SHG - EP “Supremo” 17/18 FOB – Atlantic or Pacific - USD 215/50Kg

*825 Guatemala SHB - EP FOB - Atlantic or Pacific NY ICE +37 c/lb -

825 Honduras HG - EP FOB - Atlantic or Pacific NY ICE +4 c/lb -

825 Costa Rica SHB – EP “Supremo” 17/18 FOB - Atlantic or Pacific NY ICE +65 c/lb USD 225/50Kg

825 Costa Rica SHB – EP Tarrazu 16+ FOB - Atlantic or Pacific NY ICE +70 c/lb USD 230/50Kg

1080 Uganda Drugar FOB - Mombasa NY ICE - 35 c/lb -

320 Kenya AB FOB - Mombasa NY ICE +74 c/lb -

640 Ethiopia Sidamo Washed Gr. 2 FOB - Mombasa - USc 247/Lb

*825 Guatemala stock lot FOB - Atlantic or Pacific NY ICE - 27 c/lb -

825 Guatemala SHB - Orange Honey FOB - Atlantic or Pacific NY ICE - 55 c/lb -

Arabica Coffee SPOT - EU & North America

Bags Grade Delivery Differential Outright

*640 Brazil 17/18 NY 2/3 Fine Cup FOT – Hamburg NY ICE - 1 c/lb -

3000 Brazil 14/16 NY 3/4 VGC FOT – Antwerp NY ICE - 18 c/lb -

*1650 China Simao Gr. 1 FOT – Hamburg/Bremen NY ICE - 8 c/lb -

*1600 China Simao small beans FOT – Hamburg NY ICE - 30 c/lb -

275 Colombia Supremo 17/18 Instore - Pacorini Genoa - $ 205/50 Kg

400 Peru Chanchamayo washed Instore - Genoa/Trieste - $ 204/50 Kg

340 Peru HB MCM Instore - New York NY ICE + 6 c/lb -

*1100 Guatemala SHB - EP Instore – Norfolk USA NY ICE + 18 c/lb -

*1100 Colombia Excelso EP Instore – Los Angeles USA NY ICE + 16 c/lb -

*640 Brazil NY 2/3 MTGB SSFC Instore – Toronto Canada NY ICE level -

*275 Honduras HG - EP Instore – Toronto Canada NY ICE + 7 c/lb -

Today’s best buy marked with *

Today’s best buy marked with *

P A G E 3

Robusta Coffee Shipments from Origin Bags Grade Delivery Differential Outright

¨825 Guatemala 15 up FOB - Atlantic or Pacific NY ICE - 18 c/lb -

*1600 India Cherry AB New crop FOB - Cochin/Tuticorin LIFFE +180 -

640 India Parchment AB FOB - Cochin/Tuticorin - $ 3.200/MT

640 India Kaapi Royal 18 FOB - Cochin/Tuticorin - $ 3.300/MT

3200 Vietnam Gr.1/18/2%BBB FOB - HCMC - -

*3200 Vietnam Gr.1/16/2%BBB FOB - HCMC LIFFE +35 -

*3200 Vietnam Gr.2/13/5%BBB FOB - HCMC LIFFE - 20 -

2500 Java Rob. Semi Washed FOB - Surabaya LIFFE +595 -

640 EK1 Special ELB Gr.3/400 Bean Count FOB - Panjang - $ 2.310/MT

640 EK1 Special ELB Gr.2/350 Bean Count FOB - Panjang - $ 2.330/MT

*960 EK1/80 defects FOB - Panjang LIFFE +40 -

*1200 Cameroun Gr. 1 FOB - Douala LIFFE +125 -

*1200 Cameroun Gr. 2 FOB - Douala LIFFE +55 -

960 Uganda screen 15 FOB - Mombasa - $ 2.450/MT

320 Tanzania Bukoba Superior screen 16/17 FOB - Dar es Salaam - $ 2.395/MT

Robusta Coffee SPOT - EU & North America

Bags Grade Delivery Differential Outright

*2500 Vietnam Gr.2/13/5%BBB Instore - Antwerp LIFFE +110 -

1500 Uganda BHP 11.99 Instore - Hamburg LIFFE - 90 -

900 Ivory Cost Gr.1 screen 16/18 Instore - Genoa/Trieste - $ 2.350/MT

320 Uganda screen 18 Clean Instore - Trieste Pacorini - $ 2.500/MT

220 Cameroun Gr.1 screen 18/20 A Instore - TMT - $ 2.550/MT

220 Uganda screen 18 Instore - Miami NY ICE + 30 c/lb -

320 Vietnam Gr.1 screen 16 Instore - New Orleans NY ICE + 16 c/lb -

*4750 Vietnam Gr.1 Water Decaf Instore - New Orleans NY ICE + 44 c/lb -

230 Indonesia Gr. 4 (60 defects) Instore - New York NY ICE + 14 c/lb -

*4480 Brazil Conilon 5/6 screen 13 up Instore - New York NY ICE + 18 c/lb -

600 Cameroun Gros Grain screen 18/20 Instore - New York NY ICE + 24 c/lb -

Today’s best buy marked with *

Today’s best buy marked with *

We are pleased to

present for your

consideration our latest

coffee offer list on Full

Container Load basis,

for lots of about 300

bags (18 MT) per origin/

grade. Price ideas are

both on outright and

differential basis against

NY ICE & LIFFE

future markets. Price &

stock availability are

subject to confirmation

and unsold.

In case you should need to combine several ori-gins/grades in one ship-ment, we will be deligh-ted to quote on FOT/FOB/CIF basis and arrange mixed contai-ners or combined palle-tized shipments of mini-mum 20 bags, from cof-fee stocks warehoused in the main European & US ports. Therefore do not hesitate to contact us with your enquiries or firm bids, on the pro-ducts listed below and/or any other origin or grade available on the international market. Rest assured we will do our outmost to meet your highest expectative. We wish you a pleasant and profitable day!

P A G E 4

“Stale longs liquidate in NY: Sounds like a good explanation for the drop or rather the acceleration of it. Having been bought perhaps about a year ago at 120/130/140 or even higher, carried through a couple of switches and now looking a bit silly. So human. Nice!”

M A R K E T R E P O R T & O F F E R L I S T

Report from Brazil Rather paralyzed by carnival mood and high internal replacement levels. Regular and fairly widespread rainfall was reported. With Brazilian carnival over, which has been a relatively wet one for the south east of Brazil, the rains have been beneficial for the prospects for the develop-ing new crop, but shall not change the scenario that this new crop shall be another relatively modest. Fortunately a situation that shall be adequately covered by the prospects for carryover stocks of a similar number, which shall assist Brazil to maintain a steady supply to the con-sumer markets through to next year’s new crop.

The prominent coffee trade house ED&F Man and Volcafe coffee trade house forecasted that the new 2015 crop shall come in at 49.5 million bags and therefore 1 to 2 million bags higher than many other earlier forecasts and that despite this still relatively modest number, it shall contribute along with a 3.2 million bags larger end of this year new Vietnam crop of 30.6 mil-lion bags, to global coffee supply of 151.1 million bags for the next October 2015 to September 2016 coffee year. The report does however indicate that global coffee demand for the next cof-fee year shall be 152.5 million bags and that despite this improved supply, that the next coffee year shall nevertheless experience a 1.4 million bags deficit supply. Thus why the longer term coffee supply forecast might be seen to be neutral and perhaps even mildly supportive for the coffee markets, the shorter term assessment of the pending new crop in Brazil shall be much larger than many other forecasts have indicated, tended to be bearish for late in the day senti-ment yesterday.

Coffee Market Overview Stale longs liquidate in NY: Sounds like a good explanation for the drop or rather the accelera-tion of it. Having been bought perhaps about a year ago at 120/130/140 or even higher, carried through a couple of switches and now looking a bit silly. So human. Nice!

The physical market: New Year festivities in Asia, “Carnival” in Brazil pared with rather hefty moves in NY were strong contributing factors. Colombia interest for longer spreads imminent, yet asking prices firmed somewhat and biz very limited. In CAM Honduras continues active, diffs attractive in view of low ICE levels. Some short covering demand for Guatemala/Costa Rica meeting very steady asking ideas. East-African Arabica traded in small volume, focus re-mained on better qualities. Spot business fairly active. Brazils, when being offered well below replacement find more and more listeners. Robusta spots continued to be sought after but less and less of the right (read: cheap) coffee available.

Report from Colombia Coffee flow has come to a complete standstill as the little coffee available in between crops is not coming to market at present levels, not even the soaring dollar now at 2450 pesos has been enough counter for the lower NYC. Diffs are correspondingly firming up to levels of + 8 for Excleso and offers are rather scarce. Interest remains widespread at low single digits but finding no take.

There is an important rising coffee supply from Colombia where in an interview yesterday, the National Coffee Federation of Colombia have forecasted that following the October 2013 to September 2014 coffee crop of 12,128,400 bags, the forecast that the coffee production for the present October 2014 to Septem-ber 2015 coffee year will possibly exceed 13 million bags. This ongoing with positive output from Colom-bia is expected to be followed by a much improved new crop from Peru which starts being harvested in April, which many foresee shall increase by approximately 500,000 bags to total 3.9 million bags.

The prospects of rising Central and South America coffee supply for the present coffee year has not how-ever resulted in any degree of selling aggression from Central America and Colombia and rather with relatively strong internal market price resistance being shown to the negative dictates of the softening of the reference prices of the New York market, it is forcing exporters to have to continue to demand rela-tively positive and presently increasing asking differentials for new business. These differentials well above the value of tendering and delivering surplus coffees to the New York market and likewise values that do not inspire consumer market traders to carry high differential trade stocks, which sees the certi-fied coffee stocks of the New York market remaining modest and little potential for short term growth of fine washed arabica coffee stocks within the consumer markets.

P A G E 5

M A R K E T R E P O R T & O F F E R L I S T

Report from Vietnam TET = Happy New year?!? So the country is closed. Good spot business reported from and to trade as well as to the industry. Interest remains unchanged from indus-try for 2nd half 15 for all grades. Exports in January 132.000tons down 5.6% to Jan 14. What’s really left in Vietnam for the rest of the year? How much carry over did we have? February will be a slow month in terms of exports due to the festivities. Dif-ferential unchanged Firm for Grade 2 5% minus 30 FOB.

Report from India With NY falling drastically, the replacement cost for washed Arabica Plantation A is pus-hed from +35 to +40 FOB. The big producers are still holding expecting the market to bounce back and higher prices. Washed Robusta flow has picked up but still trading at a price equivalent to +850 FOB for Rob Parchment AB. Robusta Cherry flow has also in-creased but there again the trading differential is strong at +190/+200 FOB for Rob Che-rry AB, whereas buying idea from European market for Rob Cherry AB is at +150 FOB. Indian Rupee is trading at Rs.62.30 per USD today.

Report from Ethiopia Exporters struggling to deliver coffees in time but with their needs they keep the EXC auction prices high. Agrabis not showing any intentions to sell as they are losing too much money.

2nd Hand market nearly sold out so differential going up for spot sundried coffees in Europe. Talk of the town: Ethiopia and Djibouti have agreed to establish a joint com-mittee to enhance the port and customs services in order to speed up transportation of commodities to Ethiopia. That may help a lot!

Report from Guatemala Estimates for the current crop are now around 2 million 69 kg bags, compared with about 2.7 million bags in 13/14. Availability of coffee is very limited, asking prices far above international levels. Activity have noted only in the premium section at differ-entials of about + 55 to + 65 and more. Exports from October 1, 2014 to February 08, 2015 for the 2014/2015 harvest are at 466,808 60-kilo bags, 21% lower than in the crop 2013/2014.

Report from Nicaragua The National Export Centre in Nicaragua have reported that the countries coffee exports for the month of January were 774 bags or 0.86% higher than the same month last year, at a total of 90,324 bags. This ex-port performance has contributed to the countries cumulative exports for the first four months of the pre-sent October 2014 to September 2015 coffee year to be 79,423 bags or 42% higher than the same period in the previous coffee year, at a total of 268,534 bags.

This latest report and with the new crop harvest close to completion was accompanied by a positive new crop forecast, which the National Export Centre foresees to be a 7% larger new crop, which they expect to total 1.61 million bags. This number is however somewhat conservative, as there are qualified trade and industry forecasts who have indicated a new crop for Nicaragua to be closer to 1.8 million bags. Specifics aside however, there is no doubt that the combined new crops from the producer bloc of Mexico and Cen-tral America shall this year be approximately 1 million bags larger than the previous crop, with much of these new crops still to be sold and to a degree, these potential sales are dampening speculative spirits for the related New York market against which they shall trigger price fixation hedge selling.

The arbitrage between the markets has narrowed yesterday to register this at US cents 62.39/Lb., while this equates to a rela-tively attractive 40.87% price discount for the London robusta coffee market. This arbitrage is continuing to inspire consumer market roaster interest in robusta coffees, which assist to take some of the bite out of the comparative firm arabica coffee prices. The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 730 bags yesterday, to register these stocks at 2,248,707 bags. There was meanwhile a larger in volume 1,835 bags increase to the number of bags pend-ing grading for this exchange; to register these pending grading stocks at 61,126 bags. The commodity markets were mixed yesterday, to see the overall macro commodity index taking a sideways track for the day. The Natural Gas, Cotton, Copper, Wheat, Soybean, Gold and Silver markets showed buoyancy for the day, while the Oil, Sugar, London robusta Coffee, Cocoa, Orange Juice, Corn and Platinum markets had a softer days trade and the New York arabica Coffee market took another sharp late in the day beating. The Reuters Equal Weight Continuous Commodity Index that is made up from 17 markets is 0.02% lower; to see this Index registered at 436.63. The day starts with the U.S. Dollar maintain its muscle and trading at 1.542 to Sterling and 1.136 to the Euro, while North Sea Oil is showing a degree of buoyancy in early trade and is selling at $ 60.05 per barrel. The London and New York markets both started the day yesterday with the London market steady and the New York market experiencing a degree of positive buoyancy, but while the New York market took a steady track into the afternoon’s trade, the London market had turned modestly softer. As the afternoon progressed however the New York market started to come under pressure and moved back to join the London market in negative territory and finally with sell stops being triggered along with some post-holiday catch up price fixation selling from Brazil, the New York market overtook the London market and moved significantly lower. The London market continued to end the day on a soft note and with 76% of the earlier losses of the day in-tact, while the New York market ended the day setting new one year lows and with 95.5% of the earlier losses of the day intact. This was a very dismal performance for the markets and especially so with the more volatile New York market ending at the lows of the day.

Futures Market Overview