Decreasing prices but positive fundaments at least till 2008
According to the International Coffee Organization (ICO), the volume to be harvested in the 2007/08 crop should not be enough to meet the global demand. Moreover, the lower stocks levels should reduce even more until the first semester of 2008.
The global production should total from 109 to 112 million bags of 60 kilos. In the 2006/07 crop, the ICO forecast a production of 122,27 million bags. The demand should represent between 118 and 120 million bags.
For a while, buyers are being enough supplied by exports from Central America and Vietnam. This has been preventing the grain from increasing in the international market.
Last Wednesday, the CEPEA/ESALQ Index for arabica closed at 130.99 dollars per bag of 60 kilos, down 4.77 in the accumulated of the month. Robusta prices dropped 5.87 percent in the same period, to 96.85 dollars.
From now on, the sector focuses on the crop in the Espirito Santo state of Brazil. The National Company for Food Supply (Conab) forecasts a crop production of around 7.1 million bags, increase 2.9 percent over the previous season (2006/07).
