Coffee Traders Forum
[ Post a Response | Coffee Traders Forum ]
Re: Bear traders are making an scenario to justify another drop
Producers in Brazil and Colombia (2 largest arabica producers) are making very good money at current levels. Nagual talked about Colombia cost of production. What is the cost of production in Brazil with mechanized farms? 400/450 BrL/bag? Local market has traded up to 600 BRL/bag (and I am not talking about the forward sales that might have been even better).
With such prices what do you think producers will do in Brazil? My guess is that they will invest, expand producing area, and Brazil output will continue to grow (baring any weather problem).
Other origins will suffer I agree, but if the roasters need their coffee they’ll probably end up paying higher differentials.