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6-27-2022 Armenia Coffee Report

Happy Monday to all.

It’s a humid start to the week here coming off a wonderful summer weekend just perfect for an iced coffee or two.

The coffee market continues to be a whirlwind dancing between the 220.00 and 240.00 level and back again, many days with big moves both up and down, it’s been hard to get a real sense of what is really influencing the market on any given day.

Here this morning the market is holding right around the 200-day moving average (223.40) in September. Last week saw the July hit first notice day and so far, no notices have been tendered. The remaining open interest is already down to 476.

The Brazilian Real has not been helpful to the bulls out to 5.24488 as we write this.

The COT showed long funds back to adding to their positions up 3,437 lots to 43,861 lots while shorts also added a small bit up 150 lots to 5,243 lots. Trade was once again the other side with origin a good seller, probably brought about with notice day in July pushing them.

ICE Stocks down to 955,661 in total. Honduras in Antwerp now the largest type at 408,868 bags

Markets in general seem most interested in inflation as the largest concern right now. Central banks around the world have started to use their tools to combat inflation around the world. Traders believe that this will keep the consumer away from buying anything from a house to a bag of coffee, or at least only what is necessary.

How can we help today?

All the best,
The Armenia Team