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6-13-2022 Armenia Coffee Report

Good morning,

Today it’s a sunny happy Monday here from the Northeast. Cold brew is in our machine today, perfect for a day like today.

The coffee market mirrored many other markets, backing away from recent highs and moving lower each day of the week and by the end of the week, moved down and finally broke the 23000 options support level, with options expiring on Friday. This morning we’re seeing a continuation of that selling as the dollar gets stronger as well, the Brazilian Real was back over 5 (5.06171) adding

pressure. Commitment of traders report showed long funds adding 7861 lots to be 43,573 lots long while short funds sold 603 lots and are 3654 lots short. Biggest sellers was again trade. That was as of Tuesday, there’s no doubt some of those new longs were stopped out of by the end of the week.

Market is once again back challenging the 200-day moving average having broken the 100-day MA during last week’s drop.

Brazil said their exports rose 5.1% to 2.8 million bags. “The small increase last month is a reflection of a slight logistical improvement which made it possible to ship the coffee scheduled for May and part of the coffee that was dammed up in ports” Cecafe President Gunter Hausler said. “Brazilian exporters continue to face difficulties in obtaining containers and space on ships, and face very expensive freight costs”, he added.

ICE warehouse stocks ended the week 1,017,300 with 11,049 pending grading.

We have a lovely women’s centered Sumatra Mandheling FTO, some new RFA Sidamo gr 4 in the warehouse, FTO SHB Guatemala as well.

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All the best,
The Armenia Team