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1-18-2022 Armenia Coffee Report

Happy chilly Tuesday after a snowy MLK day yesterday,

It was a very interesting week that was, not going exactly to plan. Expected to be the key for last week was index fund rolling of about 20,000 lots give or take, out of coffee and into commodities that underperformed in 2021.

The roll didn’t have the expected effect of pushing the market lower on each of the 5 days it was broken up into and in the end the market closed up for the week. According to the commitment of trader’s report, that came from fund where long fund added 1322 lots to 55,526 and short fund also bought 539 lots to end 6290 for the position ended on Tuesday. Roasters also bought a little more than a thousand lots. The next COT should be interesting as it will have the bulk of the index trading in it.

Brazilian coffee exports fell in December to 3.8 million bags a decline of 14.1% according to Cecafe, who attributed the decline to logistics bottlenecks. We continue to have difficulties.

Also in the news Brazil’s CONAB estimated the harvest for 2022 to be 55.74 and is the smallest in a “even numbered year” since 2016 when 51.37 was produced. Poor weather was blamed for reducing the crop.

We have some nice Brazil 2/3 Scr 17/18 now in Continental along with some Colombia Supremos as well. A very nice Bali Kintamani just went into warehouse.

We’d love to help you today.

All the best,
The Armenia Team