Industry Updates

In a seemingly very volatile market, in one month NYC dropped from a high of 232 cts/lb (25th?April) to a low of 192 cts/lb (14th?May) to a high this morning of 230 cts/lb. This market is following the news cycle which has shifted from daily reports of dry weather to wet weather then back to dry weather conditions in Vietnam and Brazil.?? ??

COLOMBIA

The harvest flow in the southern main crop continues to pick up with around 25% of the crop now harvested. Despite a good cup quality, yields have been poor as a result of high levels of damage from cherry borer and incomplete bean development. In the Coffee Axis region, the mitaca crop has harvested very quickly with almost 80% already in the mills. We hear local Colombian competition for coffee is very strong.??? We are hearing from our origin partners that there is a growing concern around the level of armed conflict in Cauca, with local traders pulling staff out of the region due to very unsafe conditions in the field. Differentials remain very strong despite the rising value of NYC.?

PERU

This week the crop flow continued to pick up with the Central region now 30% complete and the Northern region about 15% complete. There have been some rains, although nothing significant to impact the harvesting or drying of the coffee. More incidents of a fungal disease call Anthracnose is getting reported from the Central regions and the Amazona region in the North.? The worst affected plantations are those with little input and management.?Differentials remain stable.???

INDONESIA SUMATRA

The spring crop is coming to an end. Availability remains very tight and fixed prices remain very stable – but as NYC rises there are some opportunities to buy nearby shipments at lower differentials.?

'C' MARKET COMMENTARY

After hitting a low of 192.80 cts/lb on the 14th?May, NYC has climbed quickly touching 230.25 cts/lb v July on this morning trading.?Friday's COT report showed the funds increased their net long position by 1.3 K lots to 41.3 K lots.? The commercials increased their net short position by 2.1 K lots to 92.4 K lots and the Index funds changed little posting a net long position of 48.1 K lots. Last week the July / September inverted spread traded between 85 and 125 points.? As of this morning, the spread is trading at 110 points. Despite this, the inverted market continues to impede exporters and importers holding long positions.???? Last week the Brazilian Real traded against the US$ dollar from a high of 5.09 on Tuesday to 5.18 on Friday.? As of this morning the Real has been trading between 5.13 and 5.15 against the US$ dollar.?The ICE certified stocks continue to increase with a total of 774.6 K bags on Friday 24th?May up from 711.4 K bags on Friday 17th?May.? There are a total of 23.9 K bags pending grading.