Good day, happy Monday afternoon to you.
As we head towards the July 4th holiday – things are heading towards the seasonal, the weather, the traffic, the coffee market. The introduction of new products means folks don’t stop drinking coffee when the weather gets warm, and while that’s a good thing, things do slow down a bit, even so.
Coffee remains a bit skittish, feeling the pressures from the perception of oversupply, without the actual coffee aggressively chasing the market. Most of the major suppliers of coffee widened their diffs this week as the market moved lower. Roasters have the benefits of stock lots here and in Europe, taking up any demand that comes calling nearby, and aggressive trade houses competing for forward business, and more than once we heard trades lower than our current best origin offers.
July C finally broke through 115.00 under the pressure of first notice day but Sept so far has held the line of support there. Feels as though we will continue to bring lower support especially as nothing changes and funds stay in control. For those of us in the business a while, the open interest number is absolutely amazing.
We are here to serve should you require any assistance please let Joe or I know.
All the best and if you’re already on your way to a summer holiday, stay cool!
John and Joe