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Good summer Monday morning,

We’ve got typical summer heat and humidity here in the Northeast. That doesn’t stop us from enjoying a good cup of coffee this morning as we write this.

The market went mostly sideways last week. As we expected, the disaggregated COT with futures and options, showed that funds added just under 9000 lots net as of last Tuesday. The market tried to rally after that, and correct the oversold which it did. But Friday saw funds back in, pushing the market lower.

There were 178 notices issued for the first notice day of July 2020, most of those Honduras in Antwerp, no big deal.

Macro features continue to have an outsized effect on the coffee market. Concern over demand destruction in many areas of the economy, including the coffee market owing to the global Covid-19 pandemic. The weakness of the Brazilian Real, in part fueled by their struggles with the virus, continued.

Any player with an agenda in this current climate will have an outsized effect on the market. Right now it’s these funds who are selling into strength that is keeping the market under pressure. Unless and until it stops, the momentum is lower. Market has to get back about 100.00 in Sept to give them cause for concern.

We have a partial container of Supremos arriving this week. We have some fresh Tarrazu just in. Fresh lot of Ethiopia Sidamo Gr 4 is in the warehouse now. All the rest of our usual staples are ready for you to sample or come get.

How can we help you today?

The Armenia Team