Coffee Prices To Keep Falling Until 2015

Projections by the futures markets indicate that the price of coffee will only rebound in 2015, remaining low until then.

Friday, January 18, 2013

A low growth in demand (no more than 2%) and an increase in production in Brazil (50.8 million kilograms in 2012 to 50 million projected for the 2013 harvest), has led to a fall in price from the $313 earned per quintal in May 2011.

"Since then the trend is downward and will remain so, unless extreme weather conditions affect the production from Brazil and Colombia, stated Raul Amador, VP of Invercasa Puesto de Bolsa and an expert in international markets.

According to Amador, having made "a fundamental and technical analysis of the macroeconomic coffee environment" it can be speculated that "during 2014 and 2015 the price will be maintained between 140 and 160 dollars per quintal." However, if an escalation of the crisis in Europe and the United States is added to this environment, the tendency would be for the price to drop further. It could break through the bottom floor price of $140 and even fall to to $125 per quintal", writes Lucydalia Baca Castellón for Laprensa.com.ni

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Coffee Prices Keep Rising

February 2014

The international price of the grain was quoted at $172.60 per quintal in New York Stock Exchange.

On Wednesday, the price of coffee rose again, resulting in an increase of $52.6 in just 19 days.

Miguel Pon, CEO of the Honduran Association of Coffee Exporters explained: "Even though there as rainfall in the coffee areas this weekend (in Brazil), a new forecast of a reduced amount of precipitation in the next few weeks encouraged speculative buying as evidenced by participation of funds. " '

Coffee Exporters Reject Production Tax

October 2013

The tax promoted by the government of Nicaragua on coffee producers has also been rejected by exporters of the grain.

The bill promoted by the government to charge producers between $1 and $5 per quintal of coffee in order to finance the National Development and Transformation of Coffee Plantations will not directly affect the export sector as it is only producers who have to pay the tax, however, they believe that this is not the time to establish such fees.

Drop in Coffee Prices Sharpens

October 2013

The abundant harvests in Brazil and Colombia have pushed down the price of the grain, which could reach less than $100 a quintal.

"This puts Nicaraguan coffee in a difficult position as it has long been the main export product of Nicaragua ..." reported Laprensa.com.ni.

Nicaragua: Coffee Exports Down 9%

August 2012

In the first ten months of the current crop foreign exchange revenues totaled $374.7 million, $37.2 million less than in the same period in the last harvest.

The decline in foreign exchange earnings has been caused in part by the decline in export volumes (1.71 million quintals from October to July this year versus 1.83 million quintals in the same period last year) coupled with a slight decline in the average price per quintal. The average sales price was $218.1, $ 7.5 less compared to the same period of the previous crop, $225.6.

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