This is not a healthy factor for longer term supply, as despite the present situation the world consumption is still on a positive track and if producers are not inspired to invest into increasing yields and production and even with possible weather issues aside, there could be a longer term shortage and tightness of supply developing for the coffee industry. However in this respect one might suggest that this possibility is two to three years to the fore and not something short term, with the prospects for the present and presuming no weather related damage to leading producers, looking like relatively soft prices for the next couple of years and too late to change the minds of farmers who might think to move into alternative crops.The arbitrage between the markets has narrowed yesterday to register this at 52.77 usc/Lb., while this equates to an attractive 41.49% price discount for the London robusta coffee market. This arbitrage continues to inspire consumer market roaster interest in robusta coffees, which assist to take some of the bite out of the comparative firm arabica coffee prices. The Certified washed Arabica coffee stocks held against the New York exchange were seen to increase by 3,210 bags yesterday; to register these stocks at 2,157,015 bags. There was meanwhile a smaller in volume 54 bags increase to the number of bags pending grading for this exchange; to register these pending grading stocks at 59,389 bags.
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