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Weekly Short Report Terra Forte

Dear friends,

Same pattern with buyers abroad more focused on covering nearby needs and awaiting to build the book for new crop. The distance from spot prices to the ideas for new crop is so wide that exporters also have taken a conservative view.
Market in a hand-to-mouth mood with exporters only selling if they can cover otherwise most are avoiding big risks.

As we mentioned last week, the tightening on spreads and the massive short position held by funds has led to a corrective rally this week. We believe COT today might not show much short covering, therefore market could correct further and or remain relatively well supported.

Weather remains good for both Arabica and Conillon.

According to Cecafe site, last day of February shows 2.068.331 bags effectively shipped. When they correct probably it would increase to circa 2.3 Mio bags.

Wishing you a very nice weekend

Terra Forte Trading Desk