THE BENNETTS MONTHLY MARCH 24'
All things Bennetts and Coffee...
Welcome to the 2024 March edition of our monthly newsletter. This month, we delve into the dynamic coffee market, spotlight some exciting Guatemalan microlots, provide an update on the recent ASCA Competitions, and invite you to celebrate International Women’s Day with us!
During February the NY C market continued its recent trend of sitting between 180 and 200 c/lb. Opening the scoring at 190.25 c/lb a few days later after an initial drop, it hit the monthly high of 194.05 c/lb. It briefly dipped below the 180 c/lb floor as worries about dry weather in Brazil eased with the Minas Gerais region receiving over 130% of its historical average rainfall. Many roasters and traders are reluctant to buy up long forward contracts, instead, opting for continued spot purchases in the hope that the market will drop in the coming weeks or months. However, what was witnessed when it dropped below 180 c/lb was that there was a flurry of buying, indicating that that is a strong support level. The monthly low was the 22nd of February and reached 177.50 c/lb. It finished up on 184.35 c/lb.  February 2024 NY C Graph By the end of February, the number of bags in Arabica certified inventories had risen to 353,000 bags, just over 100,000 bags more than at the end of January. Robusta inventories had fallen to 24,000 MTs down from 29,000 MTs. Commitment Of Traders Report The commercials reduced their net long position by 7,000 lots to total -57,00 future lots. The Specs also reduced their net long position down from 55,078 in the last report to 50,521. Potentially indicating that they are less confident that the NY C market will strengthen further. The Wider Macroeconomic Impact Since Christmas the Aussie dollar has been losing value against the US currency. The USD has been building strength, as a cut in US interest rates in March has been getting less and less likely. In mid Feb the US Dollar Index (DXY) hit a 4-month high. Some large investment banks are making the prediction that US growth in 2024 double that of the consensus and outperform China and Europe, as seen in 2023. This will help to keep the desire for US dollars high as investors look to buy US assets, and therefore support the value of the currency. With no relief in sight for either of the coffee markets, it doesn’t look like currency will do its part to end roasters woes any time soon either. MICROLOT HIGHLIGHT - GUATEMALA Known for its stunning volcanoes and diverse landscapes, Guatemala is naturally gifted with its ability to produce high-quality agricultural products, with coffee being no different. With cool micro-climates, aided by rich volcanic soils its no surprise some seriously tasty profiles are found in coffee brewed from here. With an abundance of microlots passing through our office, these carefully cultivated lots from Guatemala are ones we are sure you don't want to miss!Guatemala Natural El Boqueron This delicate cup holds notes of boozy red wine, and cooked orange throughout. A rich mouthfeel carries notes of hazelnut, almond, cherry, and chocolate in the finish. Guatemala Finca Los Arroyos This complex coffee reveals a sweet strawberry acidity, paired with a smooth and silky mouthfeel. Vanilla, burnt toffee, and delicate tropical notes linger throughout the cup. Guatemala Finca Las Rosas Natural Anaerobic Sweet mango, mandarin, and tropical fruits, make this coffee an absolute delight to drink! Its balanced acidity carries through to a honey, and soft herbal finish. With limited stock left, these coffees are guaranteed to find a home! Be sure to get in quick and contact your Bennetts Account Manager before it’s all gone.  Guatemala Natural El Boqueron Next month some of the Bennetts Team will be venturing to Chicago for the upcoming SCA Expo. This jammed packed trip will include an abundance of meetings and catch ups with our suppliers and customers from around the world. We look forward to seeing you all and be sure to come say hi if you see us at the expo! This event is always a great opportunity to connect with fellow industry professionals and allows us to gain an important insight into the future of the coffee industry. We can’t wait to share what we learn, so be sure to keep an eye out on our socials for updates from our trip! A massive congratulations to our Harry for placing 4th in the Australian Brewers Cup Finals last month. We are extremely proud of his efforts, and always enjoy getting to see him perform. We can't wait see him back on the stage sometime soon! This year’s International Women’s Day (IWD) theme is to Inspire Inclusion. On the 8th of March we celebrate the social, economic, cultural, and political achievements of all women and girls but also recognise their contribution and sustainability initiatives around the world. An event for everyone to reflect on our social responsibility to take action to inspire inclusion in our communities and workplaces and work together towards gender equality. International Women in Coffee Association (IWCA) Australia is a non-profit organisation that Bennetts have been a member of for several years, and will continue to support in 2024 and beyond. IWCA believe every woman has a unique and valid voice; and therefore, respect every one woman and her ideas equally. They demonstrate and model generosity, through supporting programs that encourage the equitable allocation of resources in the world. We are proud to announce that we will be hosting an event on Friday 8th March to celebrate International Women’s Day, alongside the IWCA. Join us at the Bennetts HQ to connect, celebrate, and engage in empowering conversations. We will be hosting an afternoon of tea and cakes, with the opportunity to learn about the grading and manufacturing side, and of course, tea tasting! Details: Date: Friday 8th March Time: 4-6pm AEDT Location: Bennetts HQ If you would like to join us this Friday, follow the link to secure your ticket today! https://linktr.ee/bennettscoffee
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