In Brief
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.
NY Certs keep drawing, but we start seeing some pendings for grading again, which should be partly re-grading and partly new gradings in anticipation of a firmer U/Z structure as we approach FNC. More talks from the field of the 2022/23 yield in Brazil being lower than expected.
Even though most of coffee trading houses are seeing a bumper or huge crop in Brazil for 23/24, there remains some doubts about it as trees have been under stress due to the previous frost and the recovery might not be as speedy.
