Non brazilian sources talk about 4 to 7 million bag losses already occurred in this frost period. Brazilian sources go up to 10 million. Huge losses anyways in both cases.
Even with no more frost in the horizon, with the world inflation, the continue uncertainty of the assessments about the real damages and the danger of continuing of a drought in Brazil, coffee prices should resume the uptrend anytime soon. Drop prices in the New York C last 3 days have gone down too far,too fast, exacerbating the move down. Systematic trading has dominated the scene signing sell signals on algos. Although we cannot discard more losses on the C, the market now should open an stabilization period before continuing it's way up.
« Back to index