Coffee Market news Jan 2023, a summary
- There was a strong rebound on the ICE arabica and LIFFE robusta markets with prices surging on high traded volumes.
- The near months moved to a premium over the far months for both arabica and robusta.
Commitment of Traders (COT)
- Speculators held a 40,020 lot net short position on Jan 24th, which has been tracking the movement of coffee prices.
- Roasters were good buyers and producers became more active as prices increased over the last fortnight.
- Mild differentials are trading at levels well above previous years, with Colombian and Honduran FOB diffs trading towards +60c/lb and +35c/lb respectively against the ICE arabica market.
- Brazil diffs increased as futures prices dropped, with Vietnamese 22/23 crop below expectations and 10% below production from the previous year.
The coffee market is showing signs of growth with a strong rebound on the ICE arabica and LIFFE robusta markets, and differentials trading at elevated levels. Despite speculators holding a net short position, roasters and producers have been active buyers. Rain continues to impact prospects for crops, with the Brazilian 23/24 crop expected to be disappointing and the Vietnamese 22/23 crop below expectations.
- Falcon fortnightly coffee report
- DALL-E for the post image.