MARKET REPORT

If any of these terms in the market report are confusing, we urge you to use Investopedia to make sense of them. We have found it to be a brilliant tool when learning about all things trading, futures and currency https://www.investopedia.com/  - Scroll to the bottom of the page and select "Dictionary"

February was one of mixed emotions (a mix of anxiety and dread), and we’re here to help figure out the whats, the whys and the what-nows.

Most of the month was a continuation of January’s speculator-driven stampede in which coffee prices went forward, not backward; upward, not downward. And always twirling, twirling, twirling towards new record highs! 
 
The March NY arabica contract saw over two weeks of setting daily new records (most of them consecutive), in which it whooshed past the 400-cent psychological barrier, culminating in an all-time high of 440.85 US cents/lb on the 13th of February. As first notice day (FND) came and went (where the trade generally starts using the next contract month for pricing, i.e. May-25), prices briefly went sideways and then collapsed like a poorly cooked soufflé.

Arabica NY C Graph 

The downward move post-FND was almost as spectacular, as the C retraced 50% of the upward movement since early January by the end of February. As with the move up, roasters were generally sidelined waiting for prices to keep going down. After all, how do you catch a falling knife without having to take a trip to the ER? No one wants to be stuck with expensive stock for sure, but one also needs to see opportunities for what they are when they present themselves before they are no more.
 
Following the 50% retracement in the market, odds were high, and we were due a bounce. And so, it has come to pass, as at time of writing prices rebounded strongly off the lows in the 370s and almost back into 400-land. Time will tell whether it’s just a dead cat bounce or whether it’s back to the races for us all…  The spectre of dry weather has reared its ugly head again in Brazil, as February’s rainfall was not great, and there’s none forecast until at least the 10th of March, which could potentially bring about a repeat of last year’s not-so-good conditions.
 
Elsewhere, supply out of Central America has been low due do a late start of harvest on the back of late rains, and Colombia’s main crop supplies are dwindling (normal for the time of year).
 
Although we're not out of the woods yet and supply remains tight, the best approach is to take things one day at a time and continue adding stock to the pipeline as opportunities to secure supply at "reasonable" levels—though relative—are brief and quickly disappearing.


GROUNDS FOR HEALTH WEEK

Bennetts is proud to be a long-time supporter of Grounds for Health, an incredible organisation dedicated to improving women's health in coffee-growing communities. We're excited to announce the upcoming Grounds for Health Week - March 8th - 15th, starting on International Women’s Day!

#GfHWeek is a global initiative that unites coffee lovers, roasters, and retailers to help ensure a healthier future for women in coffee-producing regions. Cervical cancer, a preventable disease, still claims the lives of countless women in these communities. Every two minutes, a woman dies from cervical cancer, with 85% of these deaths occurring in low-income countries where coffee is grown.

By supporting Grounds for Health, you're helping to change this. Healthy women lead to stronger communities and a more sustainable coffee supply chain

If you would like to be involved in this initiative - head to https://groundsforhealth.org/gfhweek/ to learn how to register today!