Brazil Buys Coffee to Shore
Up Prices
By: www.BuyOrganicCoffee.org
Coffee prices Friday bounced off
four-year lows on expectations
Brazil, the world's biggest grower,
is preparing to buy be...
In a move similar to the US
agricultural policy of providing
price supports, Brazil buys coffee
to shore up prices. The co...
A couple of years ago prices of
Arabica coffee were up. El Niño
ravaged the coffee growing regions
of Brazil and Colombia ...
Coffee leaf rust was devastating
plantations from Central America
down to Colombia. This year Brazil
expects to see a harv...
A government response appears as
Brazil buys coffee to shore up
prices. They have done this before;
buying directly from g...
Arabica coffee as wholesale coffee
is selling for only a third of its price
from two years ago and just this
year prices a...
Here is a snapshot of coffee
futures at the beginning of
August, 2013.
.By: http://buyorganiccoffee.org/887/brazil-buys-co...
NYMEX Coffee Futures as of August
3, 2013
Delivery Date and US Dollars
per Pound of Green Coffee
Sep-13 1.1825 Dec-13 1.21...
The general consensus is that the
price for September delivery is
staying above $1 a pound because
Brazil buys coffee to s...
As the table shows the expected
price for later delivery goes up as
stocks are expected to diminish
and Brazil will not ne...
Exchange Rates and Coffee Sales
.By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
Coffee is priced on the world
market in US dollars. People in
Brazil buy things with the local
currency, the Real.
.By: ht...
After a strong run the Real has
been losing ground against the
USA dollar for the last two years.
Here is a snapshot of th...
Date Real How Many Dollars
8/11 1 0.64
8/12 1 0.49
8/13 1 0.43
.By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-...
In early 2011 coffee futures went for
$3 a pound which as just under five
Reals. Today coffee futures are
about $1.20 a po...
While coffee priced in dollars is
just over a third its value of three
years ago coffee priced in Reals is
down forty perc...
As Brazil buys coffee to shore up
prices, some Brazilian farmers are
selling their wholesale coffee
anyway at current pric...
For more insights and useful
information about coffee and
especially healthy organic coffee
follow our articles on
http://...
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Brazil Buys Coffee to Shore Up Prices

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Brazil Buys Coffee to Shore Up Prices

Coffee prices Friday bounced off four-year lows on expectations Brazil, the world's biggest grower, is preparing to buy beans. Coffee prices are at a ten year low due to high stockpiles. In a move similar to the US agricultural policy of providing price supports, Brazil buys coffee to shore up prices. The coffee will be stored and, for now, effectively taken off the market. A couple of years ago prices of Arabica coffee were up. El Niño ravaged the coffee growing regions of Brazil and Colombia greatly reducing harvests. Coffee leaf rust was devastating plantations from Central America down to Colombia. This year Brazil expects to see a harvest surpassing last year’s record. Colombia has gotten a handle on the leaf rust issue and prices for Arabica coffee are falling in response to oversupply. A government response appears as Brazil buys coffee to shore up prices. They have done this before; buying directly from growers to reduce market supply and as a result holding prices up. Arabica coffee as wholesale coffee is selling for only a third of its price from two years ago and just this year prices are down by a fifth.

Here is a snapshot of coffee futures at the beginning of August, 2013.

NYMEX Coffee Futures as of August 3, 2013

Delivery Date and US Dollars
per Pound of Green Coffee

Sep-13 1.1825
Dec-13 1.2105
Mar-14 1.238
May-14 1.2565
Jul-14 1.2765
Sep-14 1.295
Dec-14 1.316
Mar-15 1.337
May-15 1.3525
Jul-15 1.3675

The general consensus is that the price for September delivery is staying above $1 a pound because Brazil buys coffee to shore up price. As the table shows the expected price for later delivery goes up as stocks are expected to diminish and Brazil will not necessarily have another record harvest next year.

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Brazil Buys Coffee to Shore Up Prices

  1. 1. Brazil Buys Coffee to Shore Up Prices By: www.BuyOrganicCoffee.org
  2. 2. Coffee prices Friday bounced off four-year lows on expectations Brazil, the world's biggest grower, is preparing to buy beans. Coffee prices are at a ten year low due to high stockpiles. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  3. 3. In a move similar to the US agricultural policy of providing price supports, Brazil buys coffee to shore up prices. The coffee will be stored and, for now, effectively taken off the market. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  4. 4. A couple of years ago prices of Arabica coffee were up. El Niño ravaged the coffee growing regions of Brazil and Colombia greatly reducing harvests. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  5. 5. Coffee leaf rust was devastating plantations from Central America down to Colombia. This year Brazil expects to see a harvest surpassing last year’s record. Colombia has gotten a handle on the leaf rust issue and prices for Arabica coffee are falling in response to oversupply. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  6. 6. A government response appears as Brazil buys coffee to shore up prices. They have done this before; buying directly from growers to reduce market supply and as a result holding prices up. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  7. 7. Arabica coffee as wholesale coffee is selling for only a third of its price from two years ago and just this year prices are down by a fifth. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  8. 8. Here is a snapshot of coffee futures at the beginning of August, 2013. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  9. 9. NYMEX Coffee Futures as of August 3, 2013 Delivery Date and US Dollars per Pound of Green Coffee Sep-13 1.1825 Dec-13 1.2105 Mar-14 1.238 May-14 1.2565 Jul-14 1.2765 Sep-14 1.295 Dec-14 1.316 Mar-15 1.337 May-15 1.3525 Jul-15 1.3675 .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  10. 10. The general consensus is that the price for September delivery is staying above $1 a pound because Brazil buys coffee to shore up price. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  11. 11. As the table shows the expected price for later delivery goes up as stocks are expected to diminish and Brazil will not necessarily have another record harvest next year. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  12. 12. Exchange Rates and Coffee Sales .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  13. 13. Coffee is priced on the world market in US dollars. People in Brazil buy things with the local currency, the Real. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  14. 14. After a strong run the Real has been losing ground against the USA dollar for the last two years. Here is a snapshot of the relationship of the Brazilian Real to the US Dollar over the last two years. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  15. 15. Date Real How Many Dollars 8/11 1 0.64 8/12 1 0.49 8/13 1 0.43 .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  16. 16. In early 2011 coffee futures went for $3 a pound which as just under five Reals. Today coffee futures are about $1.20 a pound which is just under three Reals. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  17. 17. While coffee priced in dollars is just over a third its value of three years ago coffee priced in Reals is down forty percent. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  18. 18. As Brazil buys coffee to shore up prices, some Brazilian farmers are selling their wholesale coffee anyway at current prices because they need money and the strong dollar gives them a better return for the current international coffee price than they would get with a weaker dollar. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices
  19. 19. For more insights and useful information about coffee and especially healthy organic coffee follow our articles on http://www.BuyOrganicCoffee.org. .By: http://buyorganiccoffee.org/887/brazil-buys-coffee-to-shore-up-prices

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