For the last one to two weeks, the Arabica stocks have been dropping, not by much but they have been doing so every day. Even more significant is that not much has been added. Is it possible that certified holders are removing coffee because of what happened with the Robusta warehouses? Do coffee stocks consist of a lot of substandard coffee, even rocks maybe? Spreads in Arabica have already moved down sharply. Will they continue to do so? Is the practice of filling the warehouses with lousy coffee a very widespread one? What is the significance to our market as a whole? Where are the inspectors?
If anyone has a clue, or a comment, please share it.
“ICE Suspends Fourth Louis Dreyfus Certified Warehouse for Robusta Coffee
CoffeeNetwork (New York) – The InterContinental Exchange has suspended the fourth Robusta coffee warehouse owned by Louis Dreyfus Co for violating grading procedures. The latest warehouse suspended is in London. This follows the recent suspension of other warehouses in Antwerp, Barcelona and Molenbergnatie Espana.
According to the official statement from ICE, “Europe Grading and Warehousekeeping Procedures , FSL have been suspended from the List of Nominated Warehouses and Nominated Warehousekeepers for the storage of Robusta Coffee, until further notice. As a result, 305 lots of Robusta Coffee have been suspended.”