The Market Update explores how this week’s news, weather and other factors are shaping the global coffee trade.
Another strong week as the market lacked direction or news.
We traded in a wide range over the week but settled marginally lower week on week 359/356. H26.
The actions in South America appeared to have triggered some buying interest, but the rally after the fall failed to ignite the engines.
We appear in a stalemate — watching weather in Brazil and waiting for clarity on further or renewed Tariffs against origins trading with Iran.
Regarding coffee, interest continues to be strong with first-quarter deliveries. We are seeing roasters plan a little further as they become aware of the scarcity of spot stocks anywhere in the U.S.A..
In origin news, Honduras prices are marginally weaker; Colombia firmer and higher where offered as the main crop sells out. Likewise, Costa Rica prices are stronger and the Tarrazu crop appears up to 30% smaller. Guatemala prices are also firm as demand remains strong for all types and grades. Certified Organic and FTO selling strongly.
Indonesian prices soar as the deeper impacts of the floods — including coffee and warehouses vanishing overnight — becomes a reality. Certified Sumatra looks particularly difficult this year.
Planning continues to be key. As the market remains deeply inverted (1900 H/K), spot stocks will remain thin to offer. —N.B.
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