Tuesday, June 12, 2007


Early Summer Produce

Coffee buyers, here are a few tips to consider while navigating through Royal’s spot and nearby position:

Outstanding arrivals: There are a lot of coffees which are excellent, but these are the recent arrivals that got our highest combined ratings:
13460 Costa La Rosa
14428 Costa Dota Tarrazu
15527 Guat HHT SHB Palhu
15423 Guat Organic San Marcos
14785 Indian Mysore Nuggets
15290 Kenya pb Kianjiri
15336 Mex Pluma Oaxaca Tres Oros
15045 Nic FTO 5th de Junio
15254 SHB Panamaria
15678,79, & 80 Colombian Huila El Pital

New Items: Ref 15089 Royal Select Water Process Decaf Espresso— A blend of Sumatra, Brazil, and pulped natural El Salvador.

Ref 15574: Monsooned Java Arabica---- Indian Monsoon lover’s, you know who you are, this is one that's worth checking out.---Sweet distressed cup, and a great value as well.

Coming soon: based on pre-shipment samples, here are some exciting nearby arrivals:

Refs 15638-49 Costa Rican Dota Tarrazu Micro producer lots
Ref 15882 Guat SHB HHT San Juan
Ref 15204 Indian Plantation A
Ref 15665 African Royal Select Water Decaf
Ref 15787 Kenya Auction PB Royal Select Water Decaf
Ref 16140 Colombian Huila La Argentina
Ref 16137 Colombian El Carmen del Atrato Choco

Strategic Buying tips: This is a good time to fill in the Centrals, Colombian and Sumatra coffees you'll need until next year’s crop arrives.
There is one origin that concerns us more than the others; that is Ethiopia.

1. Take care of your Ethiopian requirements now. So far, as you know, this has been a very poor year for the naturals. The washed have been good to excellent, and they are still cheaper than Kenya. They are disappearing fast. We will sell out of Ethiopians long before the new crop comes in. As it looks now, we don’t see many offers left worth pursuing.

2. What about the C market?--- Up to this point in time, we have seen the C trade, more or less, up to a high of 1.30 and a low of 1.05. Is the C market staying at 1.20? Will it possibly break out above 1.30? A weak dollar, nearby concern about robusta supplies, and winter in Brazil have rallied the C market... It is bumping against 1.20 close by, and 1.30 further out. What next?

Outlook: Brazil has 16 million bags of over-carry over stocks and a potential record sized crop coming in 2008. I don’t think there is going to be a shortage of Brazilian coffee for the commercial roasting world. Of more concern is an over-supply situation in the next 2 years. Robusta is still cheaper than Brazil, so there is room for them to stay firm or even go higher.
So, over-simply stated, I think a 1.05 C market is more likely than 1.30. But keep your eye on the wheather in Brazil during the winter and this fall when ample rainfall is required . Also the Hurricane season is a major concern for Central America.

This page is powered by Blogger. Isn't yours?