The landscape around the country continues in a state of perpetual flux. States are trying to come back from the devastating effects of the Covid-19 pandemic, and now are dealing with large disruptions in the form of protests across the country. No politics here, just reporting that this has had a massive effect on the country, it’s consumption, and the effects it’s had on our market are real, as well as concerns on what it means for the re-emergence from lock down. The New York metropolitan area is just now started to re-awaken from the lock down. As we drove in, we say lots of signs welcoming customers, advising that the business was once again open and ready to receive them. Many of these businesses will start with limited service, curbside and outdoor service, and limits to the amounts of folks they will allow on the premises. Malls are starting to reopen with limited services and attendance as well. All is welcome as a move back towards increased consumption and sales.
The market last week finally was able to break through downside support and get through the psychological support of 100.00. The disaggregated COT showed that funds sold just over 14,000 lots and net/net funds went net short for the first time in some time. They continue to sell to trade, who gets longer still. This is of course as of Tuesday last week but, action after Tuesday was mostly sideways so we don’t expect that much of significance was done afterwards. The Brazilian Real finally started to see a little support and moved back below 5 versus the dollar for the first time in a while. The weakness of the Real has been able to allow Brazil to stay competitive even during the fall of the C market.
Colombia remains in short supply nearby – the closer to spot you need, the more difficult it is to get, especially Supremos. As the market fell below 100.00 many origins just stopped offering entirely, or widened the differential significantly. Of course, this contrasts with a domestic market that is not using coffee they way they expected to. Some roasters have become sellers to take some pressure off spots they can’t immediately use.
We’re hoping as markets re-open all across the country you might needs some nearby coffees you didn’t expect to need. Let us help you if we can. Overall, things are slow and it’s been hard to do things quickly, but we’ll do what we can to help you get what you need fast. Please have a look at the offer list that accompanies this email to see what coffees we currently have in the warehouse, that may be a help to you.
All the best
Your friends at Armenia