Starting the new year, every company is talking about growth and hot prospects for the future. And there is no better way to learn and grow, than to know your history and learn from the market signals! That’s why 32cup looks back at the tumultuous year 2012. We already looked back to the Exchange Market and the ICE Market in the first two parts of this review, so in the last part we focus on the evolutions in the LIFFE Market.
THE LIFFE MARKET
The LIFFE market is based in London, United Kingdom, and is the place where Robusta coffee is traded. The prices are expressed in USD/MT (dollars per ton). The 2012 average for The LIFFE market was 2033,58 USD/MT, but the story, of course, is more complex than that.
The first quarter 2012 was a great one for Robusta coffee. Starting from 1720 USD/MT in early January, the market price had already reached for the 2100 USD/MT mark in March (2088 USD/MT on March 3rd). From mid-February until May 1st, the price waltzed between 2050 and 1960 quite steadily, only to find itself reaching for the stars from May onwards. The 2012 record price of 2247 USD/MT was realized on May 28th, after which the market cooled down again and the price bended itself around 2080 USD/MT.
At the end of July, however, the LIFFE commerce peaked for a second time, flirting with the May record, but stranding exactly 1 USD beneath it (2246 USD/MT on June 27th). A second peak calls for a second cool-down, which lasted until mid-September, when the LIFFE bear broke out for the last time that year. In its final big uprise of 2012, the price kissed the 2200 USD/MT benchmark goodbye on October 2nd (2208 USD/MT).
The last quarter of 2012 was almost the mirror image of the first one. After this last peak, the market price decreased to around 2080 USD/MT at first, then to 1960, plummeting to 1854 USD/MT at the end of November. The Robusta market swerved around the 1900 USD/MT mark for a while, only to reach a 10-month low of 1841 USD/MT on December 17th. As a final act of dignity, the LIFFE market grabbed itself by the bootstraps and finished 2012 at a market price of 1924 USD/MT.
Overall, the 2012 LIFFE round-up chart reads like a (very tough!) mountainous leg from the Tour de France. After a slow start, the market warmed up in the hills (2000-2040 USD/MT) for a while. Then the peloton was off for a rollercoaster ride over three steep hills ‘hors catégorie‘, climaxing with a downhill race and ultimately: a small uphill finish.
LIFFE 2012 Overall Low: 1720 USD/MT (06/01/2012)
LIFFE 2012 Overall High: 2247 USD/MT (28/05/2012)
LIFFE 2012 Average: 2033,579 USD/MT