Brazil Strong Coffee Prices May Trim ICE Inventories: Rabobank
By Marvin G. Perez
(Bloomberg) --
Certified coffee inventory at ICE Futures US-monitored warehouses may decline in coming months because high differentials for beans in top grower Brazil will make stockpiles more attractive for buyers, according to Rabobank.
Recent heavy sell-off for arabica futures “appears overly exacerbated and we expect prices to rise” trading between $1.42-$1.65 a pound in the next month, analysts, led by Carlos Mera, wrote in report
“We may also see commercial long hedging at this level,” bank says
NOTE: Growers are holding back on sales because of tight availability, lower prices, uncertainty about this year’s crop size and higher production costs, says Thiago Cazarini, president of Cazarini Trading in Minas Gerais, Brazil
Weather across the Brazilian arabica belt has been excellent the past 30 days, boosting outlook for both arabica and robusta crops: Rabobank
Robusta coffee availability out of Vietnam will be impacted by a lower crop and Tet holiday: Rabobank
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