Brazil Requests Coffee included in "C" Contract

This is Brazil's third attempt to get its coffee traded on the New York's "C" market; if accepted, the price of arabica beans could drop to as low as $30 per hundredweight.

Tuesday, August 24, 2010


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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.

More on this topic

Guatemala: Coffee Producers Fear Lower Prices

October 2010

Farmers expressed concern about the possible entry of Brazilian coffee bean in contract "C" of the NY Stock Exchange.

The National Coffee Association (Anacafe) noted that the entry of Brazil could bring down the price of national aromatic high quality bean.

Prensalibre.com reports that according to Ricardo Villanueva, president of the National Coffee Association (Anacafe), "...

Price of Arabica Coffee Goes Down

July 2011

The futures prices on the New York Stock Exchange fell on Monday July 18.

Continuing the recent trend, the price of arabica coffee futures experienced a decrease, trading at $243.85 per quintal for delivery in September.

Recently, the price had dropped because of the possibility of frost in Brazil, which could have affected its crop.

Hike in Price of Coffee Means Production Costs Now Covered

February 2014

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.

Falling Coffee Prices Worry Growers

February 2012

Grain prices fell by $20 on the Intercontinental Exchange (ICE) in New York, which will affect producer’s plans and their profit margins.

Last Friday (10th February) the grain traded at $220.60 per quintal, while on Wednesday (15th February), the price per quintal was $200.40.

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