Happy 2019 to all of our friends! We hope the recent holidays brought friends, family, and good coffee to share with them!
When we last spoke, we were worried that the market was heading down to test and possibly make new lows. It did, but only briefly and has based in lighter holiday volumes.
Technically the market is watching now as we enter the period of the year where commodity funds rebalance. The general consensus is that these funds will add coffee long positions this period, some say as many as 7000 lots. It’s never easy to say what will happen because of this is there selling already waiting on this buying – time will tell.
What’s been helpful is the Brazilian Real has stabilized and is up 5% since the new year.
The market is still perilously close to the lows. What it does in the next few days will likely dictate the next 10 cents or so. We’re hoping that’s a rally, as it would be helpful to bring some coffee to the market.
Of special note, the ICE will change the “settlement window” for coffee starting today. The closing period will now be 12:23 to 12:25 to generate the “settlement price”. The market will still remain open for trading until 1:30 pm NY time.
We do have some nice fresh Colombia Supremo 17/18 and 18, in addition, some Sumatra Mandehling came into the warehouse on Friday, we’re looking forward to seeing the samples the PSS was very nice. We still have really nice Tarrazu, Antigua and Yirgacheffe 2 in the warehouse. New Guinea Sigri Estate AA, B and PB just arrived but have not yet been stripped by Continental, and FTO Sumatra are just a few weeks away, due 2/1.
If we can be of help, please let us know!