Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
it is comparison to the physical differential of Brazilian coffee against the New York market
The differential has been trading at -9 to -15 on recent years but in a short period of time, the differential is tightening on a daily basis, meaning (on my assumption) an increasing demand for Brazilian coffee (Type 4/5).
In my opinion, the demand is set by local players given the Brazilian coffee has a -600 points discount if it is to delivery against NY (not adding shipment and other costs).