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11-22-2021 Armenia Coffee Report

Good morning,

It’s a damp and chilly Monday morning here in the Northeast. We’re just drinking a blend Izwandi makes from the coffees we make in the sample room during the week. It’s pretty tasty today.

The market continued to rise for most of last week. Buying came from across all sectors, even though the technicals show the market to be a bit overbought, the buying just kept coming and we made new highs in March all the way up to 239.55. For most of the week the Brazilian Real was weak, but there isn’t much Brazil related selling notable in the market right now, those who have coffee aren’t running to sell it, even with the C at the highs and the weaker Real (currently at 5.57900). USA stocks in all hands were released during the week and was reported lower by 46,816 bags to 5,976,106 bags. The COT was very very interesting. Long funds did buy 4455 lots to go 63,755 long. Short funds also bought 2933 lots to be now 8,459 lots short. The report shows that Trade was a net seller of 6076 lots.

Dec went into notice period on Friday so some of the numbers above are from book squaring in front of FND. There have been no tenders so far against the Dec and the spreads have all zero’d out. One price for coffee currently. Total ICE warehouse stocks stand at 1,775,232 of which 908,014 are Brazils and 697,488 are in Antwerp. There are no bags pending grading as of Friday. The total is down 20616 lower for the week.

Our company will celebrate the Thanksgiving holiday this year on Thursday Nov 25 and Friday Nov 26. It appears that a lot in the trade are doing the same. It will be difficult to move coffee owing to the holiday. It’s a good time to think about your moves for the Monday/Tuesday following, there will be a lot of interest in making appointments for those days. We expect each day of this week will see less interest than the last as we move to the holiday. Lighter volumes in coffee usually mean lower prices, we’ll see what happens.

Speaking of the holiday can we take a moment to tell you how thankful we are for your business and your friendship. These past 2 years have been very difficult and without a lot of help and understanding things would have been all that much harder for us to get through. And yet here we (the collective we of the coffee industry) are. Ready for the coming change of the year and the challenges that might bring.

There are some new coffees on our list today, some new qualities have gone afloat, and a few have landed. Please have a look if you’re so inclined this week to see what new coffees might be available to buy.

All the best,
The Armenia Team