Back

APRIL 29, 2022 COFFEE & TEA MARKET REPORT

Next
Back

May 02, 2022

Next

Weekly Coffee and Tea Report

Coffee Market

The song remained the same this week as the C market closed little changed week to week after trading in a twelve-cent range. Prices lost just 2% after touching a five-week low early on. There remains little in the way of news. Macro volatility and money movement remains the main fuel for any of the up and down moves the market has seen in recent weeks. Larger funds continue to push prices around as they ebb and flow on the long side of the market. Industry buying was, again, seen into the lows, but volume was modest. The physical business remains spotty and focused on nearby supply rather than forward looking. Differentials continue to remain firm and strengthening in some spots. Transportation issues persist though, as mentioned previously, prices seem to have leveled off. The market continues to look toward the full Brazilian harvest to begin soon. Weather is not yet the focus, but it will be soon. The macro picture continues to provide volatility without any clear direction.

Technically the market remains very mixed as a product of the back-and-forth activity. At this point chart patterns continue to paint the action off the year’s highs as corrective but not complete. At this point it remains to be seen but continued volatility could see prices test toward 240 and then below 200 under the current structure as the next few months unfold. Would continue to view prices below 220 as decent value to secure needed coverage and levels toward 200 or a little lower as an opportunity to extend. Bigger picture prices toward 270/290 are still possible and substantially lower levels seem unlikely anytime soon.

Tea Report

Things continued forward this week with much left unchanged and no significant macro news to drive price movement. Uneven demand across origins has led to very erratic price movements but production has been very good overall across most origins. In India and other parts of Asia, the crop is increasing although supply chain issues and a lack of power and fuel has created some strain in production operations. The Ukrainian conflict continues to cast doubt on fertilizer availability which has many predicting a sizeable crop decline going into the next season as many farmers will not be able to afford to fertilize crops as often as normal, if they are able to use it at all.

For further insight and analysis on current coffee and tea market data, take a look at the weekly report from the Westrock Coffee commodities team.

Back

May 02, 2022

Next

Stay in the know.