Industry Updates

Last week business slowed as Latin America took time off for the Easter/Semana Santa holiday.?Inventories in North America have become substantially tighter over the last six months as the trade reduces its long position and exposure to an inverted market combined with relatively high interest rates. As a result, the spot business has become very active as buyers look to secure nearby coffees before the best is sold out.? Availability of good Colombian coffees is particularly tight and will remain so until the new crop begins to ship this month. Other origins, including Brazil and Centrals, have also been very tight with demand building quickly for new arrivals as soon as they come into the warehouses.??NYC continues to be range bound with very good support from a very strong London (Robusta market).?

COLOMBIA

The harvest is picking up slowly with availability still tight throughout all regions. There are no changes to offers but the internal market is strengthening. New crop will ship in April for late May/early June arrivals.???

PERU

The early crop continues to slowly flow into the mills with exporters now confident they can ship 81/82 type cups in May. ?The crop flow is expected to pick up quickly in May.? Weather conditions have been dry and conducive for the harvest. Prices/differentials remain stable.?

INDONESIA SUMATRA

Coffee is starting to flow and should pick up next month as Huila/Cauca and Tolima start to harvest. Some security concerns are starting to surface as armed groups start to move around more openly in the south. Quality is expected to be good with our origin partners reasonably optimistic for this crop. Prices remain stable.?

'C' MARKET COMMENTARY

NYC has continued to trade within a 195 cts/lb – 180 cts/lb trading range.? Last week's market low was 183.25 cts/lb and high 192.55 cts/lb.? As of this morning NYC has been trading in the upper part of the range at 190.50 cts/lb. The Brazilian real traded between 4.97 and 5.01 last week, but has taken a sharp drop this morning. The ICO-certified stocks continue to increase with a total of 595.2 K bags on Thursday 28th?March up from 488.6 K bags on Friday 22nd March. There are a total of 73.8 K bags pending grading.?Friday's COT report showed the funds increased their net long position by 5.8 K lots to a total of 34.2 K lots and the commercials increase their short position by 4.9 K lots to 85.8 k lots.? The index funds reduced their long position by 1 K lots to 50 K lots.?