ao link

Brazil's No. 1 coffee co-op says 2019 coffee crop basically sold out


Cooxupé, the world’s largest coffee cooperative and Brazil’s number one exporter, said on Friday it had basically sold all of its supplies in contracts with deliveries extending out as far as May or June next year.


Cooxupé’s head of trading Lucio de Araujo Dias said the company met "surprising strong demand" recently, and it would face difficulties forming new lots for new orders from now on, despite Brazilian farmers having just finished harvesting the 2019 coffee crop.


"If a client calls, I will have to work with associated farmers and try to form new lots, because what we have in storage is already committed," Dias said.


His comments contrast with a general view in the market that supplies are ample, with production surpassing consumption in the last couple of years and the expectation for a record production out of Brazil in 2020.


"I know talks about a large Brazil crop next year have cut prices, but until we get there there is a long time," Dias said.


New coffee lots from Brazil’s 2020 crop will only arrive on the market around July next year.


"Funds sold a large amount of coffee in the market recently, but that coffee does not exist," Dias added.


Funds have been heavily sold in coffee and sugar in the futures markets, betting that prices will remain under pressure from production increases.


Despite Cooxupé comments, most market analysts expect bumper coffee production next year from Brazil, with some suggesting numbers as high as 70m bags.

Related Stories

Indonesian palm oil 2021

Agrimoney Markets Extra’s running table of estimates for output in the world’s top ranked producing country

The Verdin View: April WASDE report - Changes across the board

Hear the views of Mike Verdin, Editor in Chief of Agrimoney, on the April WASDE report which showed change on the 3 major balance sheets: corn, soybeans and wheat. Due to increased South American production of soybeans, the USDA raised the forecasts for world stocks, which was negatively received. However, overall the WASDE was quite bullish. From cutting world corn and cotton forecasts to a large cut to Chinese wheat inventory estimates, this month’s report had a lot going on... I

Coffee targeted as funds sell down in softs - but buy in grains

Hedge funds halve their net long in arabica coffee, amid renewed demand worries amid the pandemic. But soybeans attract buying after a downbeat US sowings forecast

Ukraine corn 2020-21

Markets extra lists 2020-21 estimates for production and shipments in the top exporter of the grain outside the Americas
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2021 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069