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Re: The Brazilian exports until /05/21/2020
In my state, NY, farmers are dumping milk, eggs and produce because they canít get these products to the market. At the same time, consumers are in demand of these products. In the case of coffee, the way I see it, is that farmers either are unable to harvest, or they stockpile it thereby creating a glut. In consumer countries, demand remains high for whatever stocks are present, as long as roasters and distributors are able to deliver. Itís true also that consumption itself is compromised as cafes are shut. But some supermarkets have empty shelves in the coffee department. I donít know if internet buying is compensating for loss of consumption in cafes but it has increased.
My view is that disruption of the supply chain is bearish which may be why weíre where we are in price. If Brazil shuts down, prices should drop further. If not it will be business as usual. Not saying that Iím right. Just my point of view.