Coffee Prices Continue to Fall

The price of a quintal has fallen below $200 due to a Brazilian "superharvest", with industry leaders recommending caution.

Wednesday, March 7, 2012

On Tuesday March 6th a quintal of coffee traded at $192.95 on the New York Stock Exchange, down 4.24%, lower again than at the beginning of the week when it was recorded at $201.5.

A report by the National Coffee Association (Anacafe) of Guatemala said, "This fall began in London, due to liquidation by speculators and domestic sales."

Anacafé President Ricardo Villanueva told Siglo21.com.gt that farmers will have to prepare for the inevitable fall in prices given the bumper crop in Brazil. "This low is because Brazil has had a superharvest of 57 million bags of coffee and that is having an effect," said the association leader.

He also warned the sector: "We have been saying for the past year that the price would not last more than two years, so we are asking coffee producers to be cautious with their costs and investments, and also to think carefully before giving over more land to coffee production."



More on this topic

Coffee Prices Keep Falling

November 2012

The price for delivery in December in New York, at the close of November 13th, was $146 per quintal, the lowest level in the last two years.

In the view of the president of the National Coffee Association (Anacafe), Ricardo Villanueva, the dip in price undermines local production.

$300 plus per Quintal of Coffee

May 2011

The price of a quintal of coffee reached the highest level in the last 30 years on the Intercontinental Exchange in NY.

Coffee prices, since surpassing the $200 barrier on 20 October 2010, have continued to climb, trading on 28 April at $305 per quintal, said Gerardo de Leon, Manager of Marketing of the Federation of Coffee Cooperatives of Guatemala (Fedecocagua).

Speculation Delays Coffee Sales in Guatemala

November 2010

According Anacafé, international grain buyers are delaying their purchases, waiting for prices to fall.

The international price of coffee is at record levels above $ 210 per bag. Directors of the National Coffee Association (Anacafe) explained that international buyers are expecting prices to fall and added that producers are finding it difficult to sell the product at these prices in the global market.

Starbucks coffee purchases to hold firm despite closures

July 2008

The decision by Starbucks to close 600 of its stores will not affect its purchases of Guatemalan coffee, said William Hempstead, director of the National Coffee Association (Anacafé).

Guatemala sells some 25 percent of its coffee to Starbucks, which is also supplied by Costa Rica.