Good morning and happy Monday,
We’re expecting rain here most of the week. Good coffee drinking weather, and we just got some great office consumption into the sample room.
The market failed to crack and hold the 1.2500 level in July. Funds bought a bit but origin was a waiting seller. Overall the market feels a bit discouraged at this point. There isn’t much steady demand from buyers who can get just about anything they need that’s not named Mandheling. We’re getting close to the rather large crop coming from Brazil and exporters seem a bit more anxious now to sell a bit of coffee moving forward.
Centrals are selling their last bits from this crop and Peru is ready to come on line. Colombia was just a bit more aggressive seller, at least the smaller shippers were, into light demand. Bigger shippers there saying replacement values and currency concerns making it difficult to compete.
Most of the business we are seeing is for nearby/spot fill in. Breaking 1.2000 again it feels like the market wants to test the recent lows at around 1.1500 and we’ll see if it will hold that level again this time.
We have some very nice Tarrazu, Antigua and Yirgacheffe just came into Continental these past few days so all are nice fresh new crop deliveries. If you’d like a sample we’d love to send you one.
John and Joe