June 13 2019
The world’s largest coffee cooperative Cooxupé in Brazil have reported that their members have so far harvested 26.65% of their new crop coffees, which is well ahead of the 11.47% that was harvested at the same time last year.
The acceleration of the Brazil new crop coffee harvest is coming in on top of significant volumes of carryover stocks of past crop arabica coffees, which are due to fuel relatively high volumes of export sales over the coming months. But there are concerns on the part of the farmers that despite some assistance from the softening of the Brazil Real to the US dollar over the past months, that the farm gate income from coffee sales is sharply lower, which is impacting negatively upon profit margins.
This is of course a problem for coffee producers in general and has inspired the value-add Juan Valdez coffee shop chain that has 131 coffee shops within their domestic Colombian market and a further 13 coffee shops in Ecuador, Chile, USA, Spain and Panama, to target increasing their international market presence. With the intent to increase their presence within their existing markets, to return to the Mexican market and to open shops in the Argentine and on the longer term, to open up stores within many of the European and Asian markets.
The coffee markets remain devoid of striking fundamental news and for the present, remain mostly in the hands of the speculative sector of the market, in terms of price direction. Leading to something of a day by day roller coaster picture for the charts, while the physical coffee market and with the slow northern hemisphere summer season to the fore, remains lacklustre in nature.
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