Over the past week, coffee prices have surged, mainly due to a supply shortage. The wholesale rates for raw coffee beans in São Paulo rose significantly by 15.2% to BRL 32.74 per kilogram (kg) by October 16, compared to BRL 28.41/kg recorded on October 9.
Coffee producers have expressed dissatisfaction with the current coffee prices, leading to low trading activities both in the domestic market and for exports. To cope with high costs, coffee growers have chosen to hold onto their coffee, selling only when necessary for short-term commitments. Additionally, this season has seen a lower volume of coffee being locked in advance, typically resulting in increased shipments at this time of year. However, this trend didn't occur in Sept-23.
In the upcoming week, coffee prices are expected to remain on an upward trend as growers continue to withhold their supply from local markets. This situation underscores the impact of market dynamics and producer decisions on coffee price fluctuations.
Coffee Prices Surge Amidst Supply Shortages and Grower Dissatisfaction
Mondo
