UGQ Differential=+44 and +48 for Supremo 17/18.
Price US Dolar=$3849 cop.
Actual Price per ARROBA in pesos paid to producers around $110000.
AVERAGE COST OF PRODUCTION= Ranges between $75000/80000 per ARROBA.
As we see here,the producer is making good money.
Now,the reason of this beneficial price is not coffee itself but the strong devaluation and the positive differential.
The Peso has devaluated in a matter of 2-3 years 100% and differentials have moved up from levels of a year ago +18 to +50/52 for UGQ and now +44.(FOB).
So at this time producers are happy.
Exporters pay for parchment around the equivalent of US$1.06 per pound.To this parchment they have to discount about 20% for the shell and another 4% for PASILLA(Lower grade of non exportable coffee).
They are also making money and again mostly because of high differentials and strong devaluation.
Devaluation places a good part in the selling pressure as much in Colombia as it is in Brazil.
If it had not been because of this devaluation and strong differentials the price in Colombia, presently with coffee at $1.07 would be around $38000 pesos per ARROBA,which would be real detrimental for producers and exporters as well.
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