June 21 2019
Yesterday was a day with the influential Brazil market off the field of play, as the country enjoyed a public holiday in honour of Corpus Christi, while in the meantime the weakening U.S. dollar to the Real, had impact upon sentiment within the international coffee markets. These factors having contributed to coffee market buoyancy and with buy stops being triggered within both markets, to a very positive day for the markets.
This recovery in terms of the weaker nature of the U.S. dollar relative to domestic currencies for most producers does little to assist the producers, with many producers experiencing internal market price resistance and the resulting hardening of asking price differentials, on the part of the exporters.
During a meeting in Brasilia at the end of last week representatives of the Brazil and Colombian coffee communities started to prepare their presentation to find a solution for low prices, which they shall share during the World Coffee Producers Forum that shall take place over the 11th. and 12th. July. This meeting to take place in Campinas, Brazil will most certainly bring to the fore strong criticism of the speculative influences within the coffee terminal markets, but one might speculate that there is little that the industries can do to eliminate the fund manipulation of commodity markets in general.
« Back to index