It’s a chilly, rainy morning here in the Northeast. Perfect day for a mug of hot Colombia Excelso with just a little cream to take the chill away.
It was a week of ups and downs. Early in the week the market tried up but when it couldn’t get through 230.00 it corrected back below the 200 day moving average and the last 3 days were corrective back to the 220-218 level.
In terms of coffee news, it was relatively quiet. Market saw the Brazilian Real move out past 5.40 only to correct strongly this morning back near 5.20. Brazil held its election on Sunday resulting in a late October run off between past President Lula and current President Bolsonaro.
The disaggregated COT showed long funds buying 2755 lots to be 42,322 lots long while short funds also bought 676 lots to be 4794 lots short. Trade was the offset selling about 3200 lots.
ICE stocks continue to fall and are now 426,180 the lowest level of the year. There were only 640 bags pending grading
Honduras closed out its 2021-2022 crop year saying they sold 6.1 million bags which was a decrease of 19.7% compared to 2020-2021. However, they received 1.448 billion dollars at the close of 2021-22 which was 24.4% more than 2020-2021.
We see overhead resistance at that 230.00 level, support down around 210.00
We have some Brazil 2/3 scr 17/18 that just arrived, waiting on Continental to pick it up. nice RFA Colombia and some Costa Rica Tarrazu La Pastora just arrived.
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All the best,
The Armenia Team