THE BENNETTS MONTHLY JUNE '24
All things Bennetts and Coffee...
Welcome to the June edition of the Bennetts Coffee Newsletter! Can you believe its June already! and while the weather might be cooling down, our love for caffeine is hotter than ever! So, grab a cup of your go-to brew, get cosy, and prepare to indulge in some ripper coffee news and insights. We've got the lowdown on the freshest trends in the coffee market, a snapshot report on the Donas Do Café Initiative in Brazil, and exciting news about the newest Bennetts Team Member.
MARKET REPORT
May 2024 NY C Graph With such large swings in the C price, one wouldn’t want to be caught on the wrong side of it! The month of May had a 45.6 c/lb difference between the low and high for the month. For context, if you were the unlucky individual buying a contract at the monthly high, instead of the low, the 45.6 c/lb difference would equate to $17,000 USD for just one contract (37,500 lbs). We wouldn’t be surprised if we continue to see these swings in the C price over the coming months as we enter the Southern hemisphere’s winter, which brings a heightened risk of frost across Brazil’s coffee growing regions. The London Robusta market followed a similar trend to that of the C… or maybe the other way around given the fundamental lack of supply for Robusta. Either way there’s not much news on the robusta front, other than the fact that it is expensive… so expensive that roasters are starting to look to other non-traditional robusta origins or lower grade arabicas (where possible) to reduce the costs of their blends. Strange times indeed. As the First Notice Day for both the Arabica and Robusta futures approaches in the second half of June, it's uncertain what price levels we'll be discussing this time next month!  Robusta London Market Graph May 24' Certified Stocks By the end of May, Arabica had nearly 790,000 bags positioned in certified inventories. This is continuing to grow month on month and is 129,000 bags higher than the last report. This continued upward trend is a result of Brazil exporters opting to deliver to the market to capitalise on a decent pricing in lieu of strong demand. Robusta had nearly 46,370 MTs in store which again has increased from the previous report. Turns out record highs in the Robusta market are good for replenishing certified stocks… who knew? Commitment Of Traders Report Month on month, the COT report shows speculators reducing their long position by almost 10,000 lots to an overall 67,800 lots as the specs saw fit to engage in some profit-taking. If there is any supply shock, we should expect the funds to add more longs to their positions. CELEBRATING THE DONAS DO CAFÉ PROJECT In this month's newsletter, we are thrilled to highlight the remarkable Donas do Café project; a collaborative initiative between SMC and Cooxupé in Brazil. This project is dedicated to empowering women who are cooperative members and partners within the specialty coffee market. Empowering Women in Coffee Annual Donas Do Cafë Meeting - 2024
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