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Good morning,

The market traded in a broad, sideways range for the week in traditional summertime doldrums. We are still rangebound even with the drop lower this morning 94 to 99 in Sept. Funds have started their roll into Dec now. Most replacement has been against Dec for a week to 10 days now. We’re still not sure we’ve seen the lows yet.

Brazil coffee exports in July reached a 5 year high up 28.2 percent year on year to 3.2 million 60 kgs bags. That generated 5.1% higher revenues of 378.2 million US dollars. Jan-July exports totaled 23.5 million bags of coffee, up 37.6% from the previous year, generating revenues of 2.9 billion US dollars, up 11% year on year.

There is plenty that has nothing to do with coffee in the macro world that is affecting our market even now. Talk of a Brazil/Argentina trade war with Brazil subsequently devaluing it’s currency not the leastof them.

We received a couple of replies to our conversation last week regarding the future of the trading market, including some really interesting discussion about market tiers, where largely traded commercially available coffees trade at some level in relation to the terminal markets, and roasters increasingly look to partner with trusted suppliers for forward supplies at prices that make sense to both parties, but have no relationship to the commercial values. We’d love to hear from you and what youthink about the market going forward. There is no doubt that as the C market continues to test traditionally lower values, the supply chain will come under intense pressure to evaluate its

future. We’d hope you’d consider Armenia Coffee as some part of the answer to any questions youmight have moving into such a market.

Quite a few new arrivals into Continental. Brazil 2/3 screen 17/18, Colombia Excelso EP and Supremo 17/18, Guatemala SHB, and a new Panama SHB that just arrived at the docks but has not been stripped yet. They join our FTO’s from Sumatra, Mexico, Honduras and Nicaragua. Nice lots of Costa RicaTarrazu, Guatemala Antigua, Ethiopian Yirgacheffe, and our “signature” PNG Sigri AA are available right now.

The Armenia Team