Hope Monday finds you well. Spring is finally starting to creep around here and by the end of the week it’s supposed to be lovely in the Northeast. I love living here because of the change of the seasons, not despite it, but I tell you I am glad that winter is hopefully in the rear view from now on. We’re just back from Seattle and the SCAA there and while Seattle is a wonderful city, it will be nice to have next year on our side of the country again. As always it was a very interesting show.
It was an interesting week on the C. After marking its recent lows on April 17th, market has started a slow climb back to above 1.2000. Seems like it was on the back of funds lightening up their very short position with the COT saying they bought about 11k lots this last week. We’re seeing a light follow through today. Currency factors have had a hand in this as the dollar reacts to whatever drama comes from Washington these days. It appears there was some good roaster based buying at the end of the week, taking positions as far out as Dec 2020 in some cases.
The market is struggling with the very large coming Brazil crop and a spec who is “large and in charge” as they say. A break of 1.2500 in July is needed to turn this correction into possibly something more, but will the funds allow that to happen?
Meantime origin sits and tries to figure out what to trade in this market. The big Brazil crop isn’t here yet and getting to it has proven problematic. No one in Brazil is aggressive in the nearby though once you get to September shipments folks are more eager to talk, of course. Colombia has the incoming Mitaca but producers are fighting the moves lower and the local currency has not been helping much, leading to stead diffs. Central America is well sold with Peru about to come on line for those needing washed Milds.
We’ve got some nice specialties now In Continental. Tarrazu “La Pastora” and Yirgacheffe Gr 2 now available (the Yirga just stripped on Friday) and Antigua “Pastoral” hopefully in the warehouse in a day or so if Customs would be nice and let us have it. I took the remainder of the Yira PSS home with me it was that good, waiting on the arrival samples.
If we can be of assistance, please let us know.
All the best,