US physical coffee: Colombian premium eases

* Colombian differentials ease

* Tight supplies continue to underpin prices

 The premium for Colombian coffee on thephysical market eased amid choppy activity as some sellers lowered their prices as seasonal roaster demand dipped, U.S. buyers said.

"(The differential) is all over the place. Sometimes there're no offersand then sometimes somebody gets real aggressive with offering," said one U.S. coffee importer.

Differentials on the physical market are currently priced either at a discount or a premium against ICE's benchmark March contract. 

The ICE Futures U.S. washed arabica contract for May arabica coffee futures was up 1.05 cents at $2.7580 per lb by 10:07 a.m. EST (1507  GMT), after earlier hitting a 34-year peak at $2.7920 per lb.
 

The differential for Colombian usual good quality (UGQ) coffee beans
was at an average of 41 cents over, compared with 47 cents over a week ago.
 

For Colombian European press (EP), the average premium fell to 42 cents  over, from 48 cents the previous week.
 

The premium eased after Colombian truckers halted a two-week strike on  Feb. 18 and as roaster demand eased. Colombia is the world's third-biggest  coffee exporter and the top grower of washed arabica beans.
 

Tight supplies of washed arabica beans continued to underpin the  futures market and keep the physical market tight, as Colombia went into its third straight year of significantly lower production due to adverse
weather and a rejuvenation program that has taken many trees out of  production.
 

May robustas trading on the London International Financial  Futures Exchange (Liffe) were up $15 at $2,397 per tonne by 10:07 a.m.
 

Differentials for the coffee contract in New York, ex-warehouse, were quoted as follows and reflect an average price from a range against ICE's
 

May arabica contract and the May robusta contract in London:

Differentials

Santos   4's                 - 6.0      cents under "C"
Santos  2/3 fc/ss         - 1.0      under "C"
Colombian ugq            +41.0    over "C"
Colombian ep              +42.0    over "C"
El Salvador                  +21.0   over "C"
Mexican fob Laredo    +15.0    over "C"
Mexican HG                +21.5    over "C"
Guatemala HB            +36.5     over "C"
Peru HBMC               +21.0     over "C"
Uganda Pmy Robs      +17.5     over LDN
Indonesia EK1            + 7.5      over LDN
Ecuador Ext Sup         -12.5     under "C"
Vietnamese grade  2    + 6.0    over LDN

source: https://portal.hpd.global.reuters.com/