Coffee stockpiles in Brazil and other importing countries may reach critically low levels until Brazil produces its expected record harvest in July.
Sources from Brazil’s National Coffee Council (known as the CNC) told Bloomberg News that stockpiles in the world’s largest coffee producer have dwindled in expectation of the record crop for 2012-13. “Coffee stockpiles in Brazil and in importing countries continue to fall and may reach critical levels at the end of the inter-harvest period,” CNC president Silas Brasileiro wrote.
According to the report, Brazil is expected to produce a record 49 million to 52.3 million bags this year as trees reach the high-yielding end of their production cycle. But Brasilero told Bloomberg that the harvest, around July, will likely only be enough to meet local and export demand, meaning stockpiles for the following year will be similarly low.
“We continue to advise producers to be careful when selling at this moment of low market prices, waiting for better opportunities which should arise by the end of the inter-harvest period,” Brasileiro wrote.
The full story: Bloomberg