BRAZILIAN STOCKS TO HIT ALL-TIME LOW BUT MARKET REMAINS OVER-SUPPLIED
The Council of Brazilian Coffee Exporters (Cecafe) says the country’s coffee stocks are likely to hit an all-time low by the end of the season in March but it will have little effect on prices. In a recent research note, Commerzbank Research noted that Brazil had exported large quantities of coffee for years, as well as consuming a lot itself, but the unsatisfactory 2017/18 crop has failed to deliver much new supply.
“In recent months, this had already driven export activity down significantly as compared with previous years,” said Commerzbank. “For 2017 as a whole, Cecafe has thus reported a 10 per cent year-on-year decrease and the lowest export figure in five years. As a result, Brazil’s share of global exports declined from 28.8 per cent in 2016 to 25.8 per cent. Only sluggish exports are likely in the first half of 2018.”
More: https://www.coffeeandcocoa.net/2018/01/22/brazilian-stocks-low-market-supplied/