The Market Update explores how this week’s news, weather and other factors are shaping the global coffee trade.
A strange week in coffee, as we started to see what appeared to be some weakness forming — maybe the snowstorm kicked us back to reality.
Week on week, we see a small dip, 356>35, Basis H26. The inversion remains deep and the greatest issue. (H/K 1800)
Offers from Colombia for nearby shipments have started to dry up, and diffs are firm as we see the main crop selling quickly. Likewise, Costa Rica’s Tarrazú harvest seems smaller than hoped for, and prices are lifting locally as well.
Other Centrals remain firm and readily available.
Worryingly, offers of FC Brazils are a fast-decreasing commodity; as we approach the tail-end of this harvest, offers of the remaining inventory have spiked 10-20c. From the new crop starting to ship June/July, we should see a return to normalcy.
The snowstorms have impacted the ports by a day or two, and we are seeing some delays in pick-ups and vessels being able to dock.
Stocks remain thin and planning remains key. —N.B.
Don’t want to miss another Market Report? Sign up for our newsletter here. •
