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12-12-2022 Armenia Coffee Report

Good morning and happy Monday to you.

Here at the office, we got our first taste of snow. More on the trees and lawns, but it reminds us that we’re fully into winter now. We’re drinking an organic blend hot to take the chill off.

Coffee continued its march lower last week having broken through 160.00 we played in the 150’s for a while, but did not break the recent low at 154.15 and so we’re staging a bit of a consolidation again today. Funds were again good sellers with short fun adding 4160 lots to go to 47,706 which is as short as they’ve been in a while. Long fund bought a little, 1819 lots to go 22,806 lots long. Trade was the offset still.

Brazilian Real and the Colombia Peso both a little weaker today at 5.30029 and 4824.5 respectively. There have been a total of 1016 notices issued against the December 2022 contract.
ICE coffee warehouse stocks totaled 681,698 bags with 384,310 bags pending grading.

The market seems oversold to us and in desperate need of consolidation and then we’ll see where it’s headed from there. Short fund is very short, can they continue to add as they are the motivation for moving lower, origin seems disinterested here. Looks like that’s what it’s trying to do this morning, let’s see where it goes.

How can we be of help today?

All the best,
The Armenia Team