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7-24-2023 Armenia Coffee Report

Happy Monday,

It was a beautiful weekend here in the NY area. Warm but not humid and no appearance of rain anywhere. Perfect for anything you wanted to do. We like summer weekends like that. They are saying the rain comes back today. Fine by us. Pass the carafe we’ll have another cup of this really nice Colombia.

Another interesting week. The market was under pressure again early with funds still trying to push their recent advantage, but good roaster based buying kept that in check and by the end of the week it appeared we finally saw a bit of position squaring/profit taking. Could be some carry through today.

COT issued on Friday July 21 for trading as of Tuesday July 18th showed as expected. Long funds added 367 lots and are now 24067 lots long while short funds added 3300 new shorts and are now 40341 lots short, biggest in a while. Trade was the other side, for the most part.

ICE warehouse stocks stand at 535,870 bags with 4371 bags pending grading.

The Brazil Real is standing at 4.75606 and the Colombia Peso is 3967.9 both stronger than this time last week.

It’s taken a lot of selling to hold the market in place by funds who currently have the advantage but face the prospect that as they add more, who’s going to play with them when they want out? It will take a little time to convince these new shorts to head for the exits but once they decide to, the market should move quickly to the upside. We still like the market and believe we will trade at least to the mid 170’s soon enough.

Short but sweet report today, we end on our usual request to be of assistance in any way we can.

All the best,
The Armenia Team