Brazil, the world’s largest coffee producer, is suffering from a shortage of beans. The president of the National Coffee Council, Silas Brasileiro, says that in six months coffee stocks will fall to an all-time low.
Brasileiro’s words are reported by Bloomberg. The official expects grain stocks to fall to 7 million 60kg bags by March, while stocks of 9-12 million bags are seen by analysts as comfortable.
Stocks are “so low that even if we have a good harvest next year, Brazil will barely be able to meet the demand.” [на кофе]said Nelson Carvalhaes, a member of the board of the export group Cecafé. “We just need rain.”
Beverage consumption is up 3.5% this year over the past two years, according to research firm HedgePoint Global Markets.
Arabica stocks in the port warehouses of the US stock exchange ICE Futures have already reached the lowest level of the last 23 years. Against this background, the cost of Arabica futures in New York increased by 11% year-on-year and analysts expect prices to rise further.
“Global prices will continue to rise, and one of the main reasons is the uncertainty with supplies from Brazil,” Rabobank senior analyst Guilherme Moria told Bloomberg.
Author:
Ahmed Sadulayev
Source: RB
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