“Coffee stocks in Brazil may drop to 7 million bags next March,” said the head of the National Coffee Council in Brazil, Silas Brasileiro, while analysts point out that the more moderate rate is nine million to 12 million bags, each weighing 60 kilograms.
Stocks of Arabica coffee in port warehouses, which are monitored by the Intercontinental Exchange, have fallen to their lowest rate in 23 years.
Stocks are “so low that if we get a good harvest next year, Brazil will hardly be able to meet demand,” said Nelson Carvalhaes, a board member of Brazil’s exporters group Cecafe. “We just need rain.”
The demand for global stocks led to an increase in the prices of “Arabica” coffee futures contracts in New York by 11 percent compared to the same period in 2021, while specialists expect the continued increase in prices even in the national Brazilian market.
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