THE BENNETTS MONTHLY NOVEMBER 23'
All things Bennetts and Coffee...
NOVEMBER NEWSLETTER Welcome to the November Edition of our Coffee Newsletter. As the year gently approaches its close, we are still here to provide some valuable insights into our fantastic industry. This month we bring you some exciting news from our cupping room, another whirlwind update on the coffee market, a much-anticipated upcoming origin trip, and an update from the Grounds for Health organisation.
MARKET REPORT
October was more eventful than recent months when it came to the NY C market, which is more than can be said about the internal Australian green market. Perhaps consumers are tightening their belts in preparation for the Christmas rush?
Opening on the 2nd October at 146.00 c/lb it moved sideways for a few days until it gained some upward momentum on the 10th. This continued, except for one day, until the 24th. It was largely driven up by the speculatives covering their short positions as the Brazilian Real strengthened and discouraged export selling. As more shorts were covered the market went higher, and so more shorts were covered. Who likes short shorts?
With the Brazilian 2023 harvest all wrapped up market players are looking towards next year’s crop and what might or might not affect this, namely the weather. Recent reports have stated that good rains in Brazil are set to continue, boosting soil moisture used for cherry growth. This puts downward pressure on prices but tightening certified stock inventories has the opposite effect.
The NY C reached its monthly high on the 25th October at 169.05 c/lb. The highest it has been since late June. Retracting slightly in the last week of the month, indicating that players thought it was overbought, however, it made significant gains on the 31st to close out at 167.30 c/lb.
The Robusta market tracked the Arabica market pretty closely this month in its movements.
Certified Stocks At the end of October Arabica certified stock numbers were placed at 389,000 bags, once again down from last month’s number of 442,000 bags. Robusta reduced to 39,000 MTs from 42,660 in the last report.
Commitment Of Traders Report The commercials net position currently stands at -36,857 future lots short. Extending their overall short position from Octobers report. The speculatives have moved back into a net long position of 13,122 future lots long. The first time that they have been net long since June.
The Wider Macroeconomic Impact The AUD/USD remained somewhat stable in October. Even if that stable area is lower than most Aussie buyers would like. US interest rates led the charge against the AUD a while ago and with continued talk of the potential to raise rates further, that strength is not slipping away any time soon. Combined with this, in times of uncertainty people always like to back the green, the green has their back, so they buy the greenback. Wars can certainly be included in times of uncertainly so people will not be rushing to offload it with tensions in the middle east progressing as they are. A decline in T-note yields and weaker than expected American employment and manufacturing reports helped to cushion any extra strength the US Dollar would have found.
Keep an eye out for updates from our trip this coming month. A WORD FROM THE CUPPING ROOM As it is the season for microlots and specialty coffee, we have got you covered with some of the best. With some incredible coffees from Lohas Beans, they are sure to be of interest for all coffee lovers. The below 5 microlots are currently available in stock, but with very limited volumes, these are sure to be snapped up quick. - Colombia Ethiopian Landrance Washed El Diviso - Colombia Tabi Washed Las Flores - Colombia Geisha Honey El Diviso - Colombia Chiroso Natural Las Flores - Colombia Pink Bourbon Natural Las Flores All these coffees score well above 86 points, with a couple breaking the 90+ mark. Some notable mentions include the Colombia Chiroso Natural Las Flores, that cups with notes of raspberry, and rich chocolate notes throughout. A crisp white wine and strawberry acidity paired with a smooth sticky body, and a winey finish. The Colombia Geisha Honey El Diviso cupped with notes of white wine, kiwi fruit, peach, and orange notes up front. And a juicy smooth texture, carrying a long milk chocolate finish. If you’re interested in any of these exceptional coffees, please contact your Bennetts Account Manager.
AUSTRALIAN SPECIALTY COFFEE ASSOCIATION COMPETITIONS This month the Australian Specialty Coffee Association (ASCA) Brewers and Cup tasters will be held in Sydney from the 24th – 26th of November. We are proud to announce our very own Harry Ko will be competing in the Brewers Cup Qualifiers. Harry has been working with Bennetts for over six years in the Quality Department performing QC work on our incoming green beans; including sample roasting, screening, cupping and even sales. Harry has amassed various awards for his brewing and tasting abilities, which will be on display at the competition later this month! Harry has been training extremely hard and we wish him all the best for this upcoming competition. GROUNDS FOR HEALTH – UPDATE As some of you may know, each year we donate funds to a worthy cause within the coffee industry. This year we have chosen ‘Grounds for Health’ to make our donation to. This organisation uses our funding to support their efforts in providing women the opportunity to be screened for cervical cancer. They are a mission-driven, international non-profit organisation, born out of and with enduring ties to the coffee industry, currently about to embark on their 28th year of operation. This foundation is building the bridge to help women gain access to inclusive healthcare that includes innovative access to cervical cancer screenings. They have grown from a predominately volunteer organisation to one that hires and trains local staff, to increase cultural understanding and build lasting relationships. Just one screening in a woman’s lifetime reduces her cervical cancer rate by 30%, outlining the importance of providing access to those in remote areas. Our annual contribution this year was USD$5,000, which has provided support to female coffee producers in the Oromia region of Ethiopia. This year Grounds for Health reached the landmark of 200,000 women screened in their efforts to bring women-centred, high-quality care to some of the most rural and underserved communities around the world. This number has grown exponentially in the past 5 years, with over 30,000 women screened in last year alone. They are also proud to report that over this time, they have achieved a 91% treatment rate. Given the barriers to treatment that women may have in these rural communities, this is a remarkable achievement. We encourage you to visit the Grounds for Health website to learn more about the incredible work they do and why we choose to continually support their amazing efforts.
CGLE GEMSTONES AUCTION LOTS - UPDATE Last month we had the pleasure of hosting a few cupping events to showcase the amazing Café Granja La Esperanza Gemstone Auction Lots. These cupping events both in Melbourne and Sydney were a massive success, and we thank everyone for coming out to try these coffees. We hope everyone was successful in their efforts to secure these auction lots, however, if you missed out, do not worry. We have you covered! In the coming few months we plan to ship an array of exceptional microlots from Café Granja. We had the pleasure of cupping the pre-selection samples recently, and they did not disappoint! These complex coffees display a wide variety of notes, from boozy and tropical fruits, to rich chocolate and soft florals. They are sure to cater for your needs. If you are interested in these upcoming coffees, please enquire with your Bennetts Account Manager.
MELBOURNE CUP CLOSURE The Bennetts Team |