The higher market has allowed for some more business this week. Differentials eased as NY May gallivanted through the 130 level allowing shippers that are not overly focused on covering shorts, to sell; Minimum registration prices for lower grade Naturals have remained in a very narrow range of 3 cents since February so those with some stocks have sold into this week’s rally. Larger shippers were quieter abstaining from offering since they have previous shorts to cover and complain that they do not have access to as much coffee at ECX as they would like. However ECX volumes have improved and coffee is flowing from the interior to Djibouti. Quality wise we have no problems, the expected larger and better crop 2020/2021 crop is in full swing. Logistics are the weak link here, delays in vessels, cancellations and lack of containers of some shipping lines have not improved but this is nothing new…
The Covid situation improved slightly in the past week, we shall have to wait for confirmation of a trend in the coming weeks, for now we are keeping our fingers crossed that the pandemic gets under control.
Birr 40.60 = USD 1
Have a good weekend.