THE BENNETTS MONTHLY AUGUST 23'
All things Bennetts and Coffee...
As the winter chill gradually gives way to blooming days, we are back with a fresh pot of news, insights, and opportunities to brighten your coffee-loving spirit.
This month is jam packed as we delve into the latest coffee market trends, reflect on our origin trip to East Timor, share news on some exciting new coffee, and invite you to an unmissable Bennetts event.
So, sit back, grab your favourite brew, and enjoy what we have to offer in this month’s newsletter.
NY C movements and the Brazilian Impact
In comparison to recent months, July was relativity uneventful. It opened the period on the 3rd July at 159.90 c/lb and traded the whole month within an 11 c/lb range. In the first half it slowly sauntered downwards to reach its low at 155.05 c/lb. It wasn’t until the final day when it had its largest pick up, closing July out at a level of 164.65 c/lb.
The Brazil harvest is around 60% complete, 8% faster than this time last year. The steady flow of coffee coming from the trees and dry weather is helping to keep the market stable, but some farmers in Brazil have been reluctant to sell, in the hope of a market rise. At the Cooxupe conference in Brazil a couple of weeks ago it was announced that branch growth was progressing better than expected and the 24/25 crop looks promising.
It seems that for the foreseeable future the NY C will continue to stay between 155 and 165 c/lb. On the plus side, differential offers from origin to seem to be coming down across the board, and could continue to do so.
The London Robusta Market is still riding high with no relief in the near future. Closing out the month at $2,621 $/MT. Weather conditions in Vietnam are still look promising for the development of 23/24 crop which may provide the wanted respite come December.
Arabica certified stocks finished July just below 529,000 bags, 17,000 bags lower than at the end of June. Robusta had just below 52,000 MTs.
Commitment Of Traders Report
As of the cut off on Tuesday 22nd July the commercials remain net short at -20,992 futures lots short. This figure is about 12,000 lots further towards level from my previous market report. The Specs have moved into a net short of -7,079 lots. The reduction indicates their feeling that prices are likely to reduce further.
The Wider Macroeconomic Impact
The Aussie dollar had prebought its usual ticket to ride on the July rollercoaster, first heading up to just below 0.690 and whizzing down to 0.660 within this market report period. It gained strength on the greenback as the US paused its interest rate hiking for a period, but the decline came about as the US FED has once again raised interest rates by 0.25% to 5.5%. This marks a 22 year high. When a central bank raises interest rates, it usually has the effect of making that currency stronger, as it’s more attractive for investors to move their money into that currency as they receive a better rate of return. A stronger US dollar usually has a bearish impact on commodity prices, meaning coffee prices fall, but a stronger US dollar also means a worse exchange rate for Aussies, making coffee more expensive, so the good comes with the bad. Don’t American coffee roasters have it easy.
The interest rate hikes in thew US have seem to have had their desired effect of bringing down inflation, which has fallen 6% from June last year. The Australian central bank chose to pause their rate hike for the second consecutive month. With the current Australian inflation figure at 6%, something will need to be done to bring it back down to the desired 2-3% level.
In other news in the coffee world, the Fairtrade minimum price was raised this week, effective from the 1st of August from 140 c/lb to 180 c/lb. This is the first time prices have increased since 2011 in an effort to strengthen protections for coffee farmers around the world, amid the intensifying impacts of climate change and growing global economic volatility.
This month we had some amazing coffees from Costa Rica on the table. There was a wide variety on offer, with a range of flavour profiles to suit everybody’s interest.
We have 8 coffees arriving in September with limited availability, so be sure to keep an eye out on our socials so you do not miss out.
A few notable coffees within this shipment include the Costa Rica SHB CoopeTarrazu Anaerobic Microlot, that cupped with notes of passionfruit, white wine, and milk chocolate, paired with a light juicy body. This coffee scored a whopping 89 points, for its early sample.
The Costa Rica SHB Las Lajas Cumbres de Poas Black Honey Microlot, was not far behind. This complex cup held notes of apple, stone fruit, and soft berries throughout. A medium body was followed by a rounded citric acidity and a clean long finish.
Last, but not least, was the Costa Rica SHB Las Lajas Black Diamond Microlot. This full-bodied cup carried notes of nectarine, cooked stone fruit, cinnamon, and dried blackcurrant throughout. A creamy body and a milk chocolate finish made this a well-rounded and enjoyable coffee to drink.
Some other notable coffees include the Costa Rica SHB CoopeTarrazu Tirra Estate Red Honey Microlot, Costa Rica SHB CoopeTarrazu Tirra Estate Natural Microlot, and the Costa Rica Dota Tarrazu SHB La Laguna.
These coffees are sure to sell out quick, if you want to get your hands on some, please contact your Bennetts Account Manager today!
Honey Processed Coffee - Costa Rica
ORIGIN UPDATE - EAST TIMOR
Bennett's East Timor Coffee Tour: A Journey of Coffee Progress, and Social Impact
Last month, we embarked on an enriching tour of East Timor, uncovering the fascinating world of coffee production, and witnessing the positive changes taking place in the region.
The tour began with a visit to the vanilla bean buying station and processing area at the CCT (Cooperativa Cafe Timor) Dili compound. Witnessing the impressive scale of production, we learnt that this year's yield is expected to reach a record 25+ tonnes of green vanilla pods. The CCT team, with their own machine repair workshop, expertly processes the pods into finished vanilla beans, which are sold at $10 USD per package.
The journey then led us to the main coffee drying fields at Tibar, approximately 15 kilometres west of Dili. Covering 100 acres of land, the coffee drying facility left a strong impression. However, the coffee storage shed appeared relatively empty, indicating lower volumes of coffee production compared to previous periods.
Continuing the adventure, we arrived at the CCT Farmer Training Centre in Railaco, Ermera. Here, we observed the complete stages of cocoa fermentation and drying, and explored the farmer trading orchard, brimming with various fruits for farmers to cultivate and sell back to the cooperative. CCT's current programs, funded from outside the cooperative's Fairtrade premium, provide farmers with valuable seedlings, including clove, acacia, shade trees, mangoes, coffee, and cocoa. Additionally, the innovative organic fertiliser production area, utilising coffee cherry skins, benefits farmers who diligently manage their coffee plots, thus promoting increased production.
East Timor's capital city, Dili, left a lasting impression on us all, showcasing thriving growth with numerous new buildings and a bustling economy. The specialty coffee scene, represented by three small roasters linked to projects in different regions, reflects the growing appreciation for high-quality coffee. However, this specialty coffee comes at a premium, making it less accessible to the average East Timorese due to higher prices.
A significant highlight of the tour was a meeting with the chief of CCT, Mr. Sisto Moniez, and other divisional managers, where they discussed the upcoming projects and certification programs.
Venturing to the Maubesse region, we had the opportunity to visit the Maubesse wet mill, operating at an elevation of about 1800 meters, and is the primary source of their coffee. This year's coffee season started early and is expected to finish by the first or second week of July. While the quantity may be slightly lower than last year, the region's coffee continues to hold promise.
This trip also had a meaningful social impact, as we visited the second birthing suite funded by the donations from Bennetts. Meeting with the head of the CCT medical program, Mrs. Macie Soares, and her dedicated team, we learnt about the clinics' invaluable healthcare services. Interestingly, as the government expands healthcare services, CCT's health system will gradually contract. Nevertheless, the positive changes brought about by CCT in the last seven years are evident, as the local staff has grown in knowledge and management capabilities, showing a promising future for all.
In conclusion, our tour of East Timor proved to be an enlightening experience, uncovering the world of coffee production, and witnessing the impressive strides in social services and economic growth within the region. The journey exemplified the profound impact that coffee cooperatives like CCT can have on communities, fostering progress and empowering local farmers for a better future.
CCT Processing Plant, Dili - East Timor
FAIRTRADE FORTNIGHT
This month we are celebrating Fairtrade Fortnight from the 2nd – 15th August. Over these two weeks individuals, businesses, and organisations come together to promote and support fair trade practices. It also aims to raise awareness about the importance of fair trade and its positive impact on producers and communities in developing countries.
Fairtrade ensures that producers, particularly in developing nations, receive fair prices for their products, enabling them to earn a sustainable income and improve their livelihoods. By adhering to social, economic, and environmental standards, fair trade empowers farmers and workers, often from marginalised backgrounds, to have better working conditions and access to essential services like education and healthcare.
Throughout Fairtrade Fortnight, various activities and campaigns are organised to educate consumers about the significance of fair-trade choices. Businesses promote and sell fair trade products, such as coffee, cocoa, tea, sugar, handicrafts, and clothing, emphasising their commitment to ethical sourcing.
This year is all about fair prices and highlighting how they support farmers in tackling the climate and economic challenges of the future.
Bennetts offers a range of Fairtrade products, from across the world. Through purchasing any Fairtrade products, you are contributing to building a more equitable and sustainable future for producers and consumers globally.
Please contact your Bennetts Account Manager for further enquiries and to learn more.
CAFESMART
Don’t forget – tomorrow, Friday 4th August is CafeSmart Day.
This year, CafeSmart has over 700 cafes joining across Australia, all coming together and acting against homelessness. Here is how you can help:
Click on the StreetSmart hub here check out the interactive map and find your local CafeSmart venue. Head down and donate the cost of a coffee via the QR codes in store. Simple! $1 from every coffee goes towards ending homelessness across Australia.
This year, with the rising cost of living and the rental crisis, many people end up sleeping in tents, caravans and in their cars. CafeSmarts small community grants are needed now more than ever. All grants are announced and mapped on the StreetSmart website a few months after the event.
(If you want to help from home or are not a big coffee drinker, you can always donate online via their website)
MICE 2023
BENNETTS X MICE 2023
We invite you to join Bennetts for an evening to catch up with our team. This is also a great opportunity to connect with those across our industry, or to reconnect with some familiar faces. Located a short walk from the Convention Centre, there is no better way to end the first day of MICE 2023.
We will have a selection of refreshing drinks alongside various canapes and snack options throughout the evening.
This event is invitation only and tickets are limited so get in quick before they go!
Be sure to secure your free ticket using the link below, and we look forward to seeing you all for an enjoyable evening.
Get your ticket here
The Bennetts Team