This is in the context of arabica futures currently trading at more than $180 per hundredweight, largely due to falling supplies.
Though the South American giant's request is expected to be rejected again by the New York Stock Exchange, this new attempt will sound alarms in coffee markets, since if arabica harvests continue to fall and demand cannot be satisfied then Brazil's entry into the coveted "C" contract club could become a reality.
Brazil's growers have already started switching their production to arabica beans, attracted by the higher prices. The differences are such that Brazil is offering its coffee on the Intercontinental Exchange (ICE) with discounts of up to $0.09.
The 72% increase in the price of the grain from November to date now offsets costs in El Salvador.
A rebound in coffee prices in recent months now allows coffee producers to cover production costs.
From a press release issued by the Salvadoran Coffee Council:
The Salvadoran Coffee Council, in light of rising prices for Arabica coffee futures contracts in May 2014, reacted with optimism urging producers to be vigilant and manage their business dealings properly considering that prices now exceed production costs.
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