Brazil has harvested a great crop with great quality. With the rally in prices, semi washed coffee traded below tenderable parity (meaning the terminal market was the best buyer for these coffee, reflecting the surplus of Brazil coffee this year).
Now coffee arrived and gets graded. There is always some % that does not pass, even for other origins.
Now the question is do you see the glass half full with pass rate at 50%?
Also remember that what does not pass can be appealed once. Then if everyday you see pass rate at 50% lest say, real pass rate could be 75% (on the first 100 bags presented 50 pass, 50 fail. You appeal the 50, 25 pass, 25 fail, in the end you have 75 bags certified).
Now itís a calculation for the trade house. If they make 3/4 cts/lb on everything that pass by delivering, then can they afford to make 0 on the 25% left? Even loose money on these?
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