Porto Alegre, October 08th, 2021 – ICE US certified coffee stocks totaled 1.973 million bags at the end of the trading session on October 6, with 1.059 million bags of Brazilian semi-washed coffee (54% of the total) and 796 thousand bags of Honduran origin (40% of the total).
The lack of containers and space in ships, besides making freight more expensive, has also hampered the flow of coffee shipments around the world. This situation has delayed deliveries and reduced the buffer stocks of industries. The result was growing interest, particularly from US roasters, in ICE certified stocks. Thus, from June (2.19 million bags) until the beginning of October 2021, the volume of coffee stored in warehouses accredited by ICE US fell 216,000 bags, down 9.9%.
Despite the bearish sequence, stored volume is still quite comfortable, not representing, for the time being, a threat to supply and contracts on ICE US. The current certified stocks are still 80% higher compared to the level of Sep/20, when stocks were at 1.099 million bags. However, continued purchases of certified coffee can quickly reverse this situation. Hence the warning sign. An increase of 80% from the level of September 2020, when stocks were at 1.099 million bags.
Funds already held a net long portfolio of 65,575 coffee futures contracts at the end of the September 28 trading session on ICE US. They seek protection in the face of doubts about production in Brazil.
SAFRAS Latam