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"

After the tumultuous month of April, with global news and markets as volatile as each other, May provided some slight relief as things seemed to cool down. For Arabica, the month opened only 0.25 usc/lb shy of the monthly high of 399.30 usc/lb that was hit a little later that day, before retreating to the mid-380s. Prices stabilised, relatively speaking, for over a week before experiencing a sharp 15 usc/lb drop on the 12th due to the US and China agreeing to pause their tariff battle… for now.

Staying rangebound between 368 and 372 usc/lb for the best part of the following weeks, support was finally broken with the market recording 3 consecutive losses to finish the month. A welcome sight for a big part of the industry, none more so than roasters. 

Arabica NY C Graph 

Most eyes have shifted focus to Brazil as the 25/26 harvest starts gaining momentum and the winter months roll in. Early reports suggest that there will be more availability of larger screen sizes which many traditional 17/18 screen buyers will welcome with open arms. In addition to this, some trade houses have adjusted their crop estimates upwards as the first parts of the harvest show promising signs. We did however hear our first whispers of the feared F word with forecasts showing a cold front moving through the southern part of Brazil to start June. As we got closer to the front rolling in, it was clear there was going to be very little risk in producing regions.

Over the next couple of months, the Brazilian winter will bring some colder weather to major producing regions, starting the annual rumour mill and speculation of potential frosts. It is important to note that it is normal for this time of the year and can often drive further volatility in coffee markets. While temperature is a key ingredient of a frost, there must also be moisture present on the flora of the tree for the frost to occur. Therefore, simple temperature forecasts must be evaluated further before making assumptions… and after all they are forecasts not actuals.

On the AUD to USD front, the month ended slightly above where is started in the 1AUD = mid-0.64USD. Throughout the month the AUD oscillated 1 cent up and down from the mid-0.64 point but couldn’t maintain continuous motion trajectory either way.  


BENNETTS UPDATES

Over the past year, the coffee industry has faced shifting demand, rising costs, and ongoing uncertainty — and businesses have had to adapt. At Bennetts, we’ve taken this time to listen, reflect, and find better ways to support you. As a result, we’re introducing two key changes — effective from the start of June 2025 — to make working with us simpler and more flexible:

• No more Minimum Order Quantity (MOQ) — Order what you need, when you need it. We’ll arrange delivery regardless of volume.

• No more Pick & Pack Fees — We’re covering this cost to reduce your overheads and simplify invoices.

These changes reflect our ongoing commitment to evolve with your needs and make doing business with Bennetts easier.

We're also investing in a stronger spot position across Australia. While national availability of physical stock is tightening, we know reliable access is crucial — whether it be for topping up, blending, responding to demand, or exploring new offerings. It’s about giving you more flexibility, faster turnaround, and greater peace of mind.

We welcome your feedback. Reach out to your account manager, call us on (03) 9853 0328, or email trading@hab.com.au.


A WORD FROM THE CUPPING ROOM - GUATEMALA

Guatemala Finca El Durazno 

Later this year, we’re excited to welcome two standout microlots from Guatemala’s Santa Rosa region – the Finca El Durazno Natural Anaerobic and Finca El Durazno Washed. Both coffees showcase the region’s legacy of quality production and innovation, offering distinctly different profiles shaped by their processing methods.

The Natural Anaerobic is a bold and vibrant expression, delivering a burst of tropical orange, pineapple, and raspberry, balanced by rich dark chocolate throughout. Its sweet, citric acidity is met with a syrupy body, finishing with indulgent notes of dark chocolate and almond. This coffee is an adventure in complexity – lively and juicy with layered sweetness.

In contrast, the Washed lot offers a deeper, more refined cup. Expect notes of dark chocolate, blackberry, and soft boozy undertones, supported by a berry-like acidity and a creamy, silky body. The cup rounds out beautifully with a hazelnut and chocolate finish – smooth, comforting, and elegant.

These coffees are grown by a dedicated group of 20 producers working with Emanuel Castillo, fifth-generation farmer at Finca El Durazno. Rooted in tradition since 1893, the farm has evolved into a community-driven hub under the Cosechando Esperanza (“Harvesting Hope”) program, which emphasises quality, sustainability, and shared knowledge.

Environmental and social responsibility are central to the project. Through their Harvest Hope initiative, producers follow a structured five-year sustainability plan that includes environmental education, safe agrochemical practices, and the proper disposal of waste. The program also supports producer development through training on financial literacy, agronomy, and social empowerment – ensuring long-term impact for families and future generations.

Stay tuned for arrival updates on these beautiful Guatemalan coffees or get in contact with your Bennetts Account Manager to learn more.