December 28, 2018 Coffee and Tea Market Report
A shortened report on what has been an abbreviated Holiday Week. It might have been the yuletide cheer that nudged the “C” Market to close up, breaking what would have made an eighth consecutive week loss. Much of the trade was off as they extended their holiday. With the historically low prices we have seen, the market has traded below the cost of production for most producers for some time now and it is clear that the downward trend has and will continue to hurt small holders and the more vulnerable portions of the supply chain. Record crop numbers continue out of both Brazil and Vietnam and there is little reason to think the market will turn around. On the physical side differentials remain firm and trading has been slow. There have been many conversations about volatility in the stock market this week, the continued threat of trade wars and a government shutdown with no end in sight leave many with an unsure view about where stocks are headed. The market will be open next Monday December 31st, but closed New Year’s Day.
Production continues to be healthy and typical for this time in the year. Argentina has seen rain and good quality production even though reports continue of green leaf not selling. South India crops are fair as the weather continues to be overcast and showery.East Africa continues to see decent crops as temperatures climb with erratic rain.
From the S&D team we would like to wish everyone a Happy New Year, may your 2019 be a happy and prosperous year!
For further insight and analysis on current coffee and tea market data, take a look at the weekly report from S&D’s commodities team.