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1-3-2023 Armenia Coffee Report

Good morning and happy Tuesday.

Happy 2023. Let’s toast with your coffee of choice today that the new year brings us health and prosperity. Sprinkle in a little happiness as a garnish.

As is usual for our industry, the week between Christmas and New Year was quiet without much fanfare. The market consolidated inside the recent range.

Commitment of traders report showed that funds, for the most part, enjoyed their holiday week as well, neither side was aggressive. Long fund bought 662 lots and are now 27,950 lots long while short funds also bought, a small 140 lots to be 43,576 which is still a sizeable position.

Expectation is that in the coming days, index funds will be re-balancing their positions and that could bring a fair amount of trading here to coffee. Funds are expected to be buyers this year and could bring as much as 20,000 lots of buying in total. Let’s watch the trading and volumes and see if that’s true.

Presidential change over the weekend in Brazil. Real is 5.37507 which is a little weaker than this time last week. Colombian Peso also a little weaker at 4840.3.

Resistance waits at 175.00 in the March with support down around today’s lows 165.00 or so. So far this morning it appears that the low’s held and we might be ready to try upside resistance and see if we can scare the short fund a little bit.

Can we be of help today?

All the best,
The Armenia Team