Our first concern is that our friends, colleagues, customers, partners and extended families are following the suggestions of your Government and Local health agencies, concerning the novel corona virus and COVID-19 and doing what is necessary to stay safe.
Here at Armenia most of our traders work from home, until our local agencies give the “all clear” for return to work. That doesn’t stop us from doing what’s necessary for you our friends and customers. We’re still able to access records, issue delivery orders, get you samples, whatever you need to keep going.
Our logistical partners are all working as well, though some a little slower than normal. Warehouses are tightening hours and limiting interactions with staff. Our samplers, truckers and steamship partners are working as close to “normal” as current conditions allow. Our best advice is to give yourself as much time as you can to be sure you have what you need on a timely basis.
Last week, the roller coaster continued. From the COT issued on Friday for trading as of Tuesday it looks like funds covered about 10,000 lots of shorts. Once they were finished, the market, trading in unusually light volumes, came off and Friday was a sharp down day, as much as for lack of aggressive buying than anything else. So far this morning, we’ve an “inside day” of consolidation as the market contemplates it’s next move.
Brazil and Colombia remain tight waiting as much for the new crops as much as shipping what’s already contracted. Many stories recently, which we can add to from our own experiences, that roasters are asking anyone who can, move up their shipments to ASAP hoping that container availability and logistical supply remains nearly normal. In Colombia, where the mid-crop is approaching, producers worry about being able to employ enough pickers to get their crop to market as quickly as possible. As many pickers come from outside Colombia, mostly Venezuela, places to house and keep pickers on site and healthy is a real concern. Exporters in both countries, as well as Central America, mostly withdrawn, interested first on shipping coffee already contracted, while supplies of available unsold lots remain scarce, and is most like the reason for the upward bias in the C – there is not a lot of origin selling waiting on the higher market at this time.
We continue to hear of pending large draw downs in the certified arabica position. As of today, ICE stocks stand at 2,007,861 bags, the vast majority of which are Honduras in Antwerp (1,311,759 bags), and about 40K pending grading. We’ll keep an eye on this.
We’re continually proud hearing about coffee companies all across the country, reaching out to help first responders, doctors and nurses on the front lines of fighting this disease. All are in our prayers.
Of note, we have 222 bags of Colombia Supremo scr 17/18 just into Continental warehouse, as are our New Guinea A’s and PB’s from Sigri. We have fresh Sumatra arriving on the 3rd, a RFA certified Costa Rica Tarrazu arrived over the weekend awaiting Continental to go and pick it up. We also have a fresh box of Brazil 2/3 scr 17/18 that just went into the warehouse. Speaking of fresh we also have some wonderful Yirgacheffe, washed and natural just into Continental from our partners Dumerso in Ethiopia
– really nice coffee. We have a few bags left of FTO Sumatra, Natural Ethiopia Sidamo Gr 4 with great berry characteristics, and some Kenya AA and AB that are really nice lots we really were proud of the outturn samples from the warehouse. FTO Peru, Mexican, Nics – and some nice Panamas also ready to go.
Please let us know how we can help you today, and please, stay safe.
All the best
Your friends at Armenia