Good day all,
It’s an absolutely beautiful day here in the Northeast as we transition now from Summer to Pumpkin Spice…er um I mean fall.
Another interesting week in the U.S. coffee world with weather playing a major role. This time not at origin, but here in our country where 2 successive Hurricanes made landfall and caused significant damage as it transitioned out of the country. Everywhere from the deep south to the Northeast felt the blows from these Hurricanes. Transportation was again delayed, warehouses down south and even here in the Northeast, had to deal with water and power outages, and delays. Pictures of water once again flooding the NYC subways was once again, amazing. Our thoughts and prayers are with all who suffered under these conditions, which includes some members of our staff.
The market has had a trend of late, make the highs in the early trading and then erode those gains into losses as the days go on. Lighter than normal volumes, perhaps exacerbated by the 3-day holiday weekend in the USA might have helped. Trends are trends until they’re not.
Another interesting COT report showed that long funds added to their longs buying 1630 lots to go 53,888 lots long. Short funds bought back 1809 lots to end 14,473 lots short. Trade was a net buyer of about 800 lots.
Colombian coffee production fell 16% in August to 10.09 million bags. FNC attributed the drop to a wave of social unrest from late April to early June causing logistical problems. Exports remained stable to 1.13 million bags. Since Jan production has fallen 8% to 7.84 million bags while exports increased 1% to 8.06 million bags.
It’s the Independence Day holiday in Brazil today. The real is trading at 5.16899 this morning. The Colombian Peso at 3807.7
ICE warehouse stocks stand at 2,162,806 bags of which 1,151,885 are Brazil and of those 853,784 are in Antwerp. There are 4078 bags pending grading the lowest number in a while we’ve reported to you.
We have some RFA Colombia Excelso just into Continental along with FTO from a women centered co- op. Speaking of women, we have a Sumatra FTO from Keteira arriving on the 13th. We should have some nice Guatemala from Quetzaltenango arriving on the 8th.
We’d love to help you if we can
All the best,
The Armenia Team