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Good morning and happy rainy cold Monday,

Typical Northeastern Fall day has us drinking some specialty Colombia today.  Hope you have something equally yummy this morning.

The coffee market continued its rally on continued strong fund buying, mixed this week with some reported roaster based buying as well.   The COT at the end of the week showed funds overall bought about 10,000 lots net/net, getting to a total of +14,000 lots long by the end of the reporting period.  The next COT should again have funds buying a similar if not larger number.  Origin remained a seller into the rally though still not as aggressively as one would think on a rally of this magnitude.

What’s changed?  Well, the way managed money is looking at coffee at the moment seems to be the most important thing.  Short and medium term players have definitely taken short positions into good sized longs, and based on this morning’s action, seems they want to continue down that path.  We’ve got the makings of an outside trading day in the midst of a good long run higher.  We’re a bit concerned the market is a bit overbought on the technical scale but funds don’t really look at the older metrics when they get their minds wrapped around trading a market any more, some of the older metrics don’t apply the way they used to, until they do again.

In the news some interesting notes using coffee in interesting ways.  Ford Motor Company working with McDonalds and their roasters to use chaff to make car parts.  Air New Zealand using edible coffee pods now to prepare coffee in flight.

We’re getting low on current crop Costa Rica Tarrazu, though we have some discounted coffee from the previous crop still available.  If you need a few bags to tide to the first deliveries of the new crop, now’s the time to take a few on.  We’ve still got some nice FTO coffees in the warehouse, Sumatra, Guatemala, Honduras, Nicaragua, Mexican, just a few bags of Colombia, and a really nice fresh delivery of Peru all available in Continental.  We got some nice Ethiopia Sidamo Gr 4 just into Continental and some really nice Kenya AA and AB just in, we cupped them and thought they were really nice deliveries.    We have less than 100 bags left of our Panama SHB “Indian Baru” still available at Continental.

We would love to be of help to you today

The Armenia Team