Good morning and happy Monday. Wishing you a good All Saints day today – many of our friends in Central and South America will be celebrating.
The market had a good range last week as the market reacted to reports from Brazil that the rains might not have been all that was needed to make things better after all.
A “well known” duo of market analysts were travelling through the producing areas and sending back videos on YouTube for all to see. They were citing a multitude of problems for the Brazil crop as they made their way through the producing areas.
A roller coaster ensued. The market started the week at 20000 went down to 19725 up to 21030 back to 198.60 and now this morning is again testing 21000. Most of the time – the volumes were not great so committed trading was a big influence on the way the market traded. There was reported good trade based buying near the lows. The market continues to suffer through very difficult logistical problems that are likely to be with us for some time and we’ll be mentioning them as a reason for support.
The disaggregated COT issued on Friday October 29th for trading on Tuesday October 26 showed long funds bought 408 lots only to go a large 63317 lots long. Short funds also bought 340 lots to be 11080 lots short. Trade bought about 1800 lots. Selling mostly non-reportables and swap dealers.
ICE warehouse stocks fell again this week and a fair amount of the pending gradings failed, so they weren’t available to offset. Total 1,879,864 bags of which 1,000,004 bags were Brazil of which 738,733 were in Antwerp. There were 40,786 bags pending grading. The Brazilian Real on the defensive again this morning out again to 5.65728. Colombian Peso 3763.7
A reminder that clocks change this coming weekend.
If you use RFA certified coffee we have some nice RFA Brazil 2/3 in the warehouse now as well as some Colombia RFA and Guatemala RFA, and we still have a few bags of Honduras RFA from our great friends at BSR. We have some Sidamo RFA on the water arriving on the 15th and some Bali Kintamani that just went afloat. We have women’s centered Colombia FTO and Sumatra FTO now in the warehouse as well. If you use Robusta we have some nice wet/polished Vietnam in the warehouse now.
How can we be of help today?
All the best,
The Armenia Team