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Good morning,

We hope our weekly message finds you safe and sound.  Life continues in the age of the pandemic.  Around the country, the nation attempts to open up again while staying safe.  For so many companies around the coffee nation, this is going to be a very important time.

Last week algorithmic funds got more aggressive and the market tested and broke key support levels.  According to the disaggregated COT with futures and options, funds as of Tuesday sold about 4500 lots net net and most likely added similar amounts on the days of the week following, especially Friday when we broke 10100 on the chart and then 10000 psychological support.

The market is not helped right now by the overall tenor of the market where interest is subdued to say the least.  No one wants to commit to future purchases when no one know what the future will bring.  Most of the trading we are seeing and hearing about is nearby/spot/afloat trades.  

From here it’s tough to identify where the nearby support is.  We’re in a territory we haven’t seen for quite a bit.  Origins have been helped against the declining market by declining local currencies both is Brazil and Colombia, probably others.  Brazils are starting their major harvest sold, but with more to sell and they have been getting aggressive.  Colombia, on the other hand, is entering the Mitaca, but internally the market is well supported and at least one major supplier is reported to be very behind (some buyers are probably not unhappy about this, some are).  The market will likely continue to decline if the funds are willing to continue to add to their now winning positions.

We have a landed container of Supremos in store and ready to deliver if you have some interest.  We have more from Popayan that will arrive on June 9th at the pier. Fresh Tarrazu, Natural Yirgacheffe, Sumatra, Guatemala HB, and Panama recently in the warehouse.  FTO Peru, Nicaragua, Mexico, Sumatra, and a few bags of Colombia are available.  Our usual Mandhelings, Brazil RFA, PNG Sigri Estate, and Vietnam Robusta are all available.

How can we help you today?

Your friends at Armenia