News & Reports

Coffee traders are used to volatility, but even judging by our high standards the New York rally of 33 cts in just 4 days was spectacular.

The harvest has begun in earnest in most coffee regions, as the drier weather in the last couple of days prompt farmers to the field to speed up harvesting. But weather forecast point to unseasonal wet weather from middle this week, which could potentially disrupt the harvest once again.

Macro remains a key driver. The FED’s July meeting minutes sounded a touch less hawkish, which is interpreted by the market as a posssibly softer rate hike come September.

Coffee futures rallied last week following the better-than-expected US CPI and the strong employment releases, which empowered markets to switch to “risk-on” mode.

The main driver of NY has been a macro-driven sell-off with index funds exiting their entrenched long position across most commodities assets.