Europe Trend Week 32
European market still balanced yet idling.
Demand has slowed greatly on most European markets, because of the high temperatures and the run-up to a shortened business week (public holiday on 15 August). However, the overall supply is continuing to subside. On the one hand, while volumes from Ecuador remain barely average (wintry temperatures in production zones), incoming Costa Rican shipments have continued to decrease and the Colombian seasonal increase, delayed by 2-3 weeks, has started only hesitantly (5% below average).
On the other hand, incoming African shipments have temporarily hit very low levels (56% below average) because of maintenance on a ship. In addition, the fall in French West Indian volumes, still in shortfall (26% below average), has continued. Consequently, the combined Africa/FWI supply shortfall is widening, reaching a level 47% below average. Hence prices remain stable, albeit at below-average levels.
In Russia, the improvement is continuing, because of more dynamic demand. As for Spain, despite falling demand, prices remain stable and high because of the Canaries supply shortfall.