Coffee price has skyrocketed by 64% since May 2010! This is a reality that will affect all of us next year, and is affecting already coffee purchases at origin, things are getting a bit rough purchasing coffee here in Guatemala. Lets discuss what we think.

The first time in 15 years led the commodity coffee 200 cents

Prices of some consumer end price adjustment yet to follow up the cloud

 

A variety of agricultural products all the way up, compared to 50% surge in coffee beans is a staple product rose in the first. It is said that morning futures limited liability company providing data show that this year, the international coffee futures low as 133 cents / lb, up 204.45 cents / lb, this is the following, after 1994, coffee prices, coffee futures prices in 15 years the first time exceeded 200 cents. Some media reports, affected by rising raw material, Starbucks, UCC and other branded consumer terminals has raised the price.

More: http://www.sourcejuice.com/1396269/2010/11/05/Coffee-futures-prices...

 

 

 

  Posición Apertura Alto Bajo Cierre Dif.  
 
DIC/2010 204.50000 209.70000 203.85000 208.10000 2.95000


 
Los precios del café en la plataforma ICE cerraron con ganancias esta sesión, a pesar de la firmeza del dólar. El mercado respondió a la firmeza del contrato de café robusta que estableció nuevos altos de dos años, influenciados por reportes indicando que intensas lluvias se movilizarán durante todo el mes de noviembre a la región central de Vietnam, causando más retrasos a la salida del café robusta. La Asociación Vietnamita de Café y Cacao - VICOFA, dijo que el gobierno de Vietnam aprobó un programa a partir de diciembre para retener hasta 5 millones de sacos de café. Este año el gobierno aprobó retener 3.3 millones de sacos de café por medio de 13 firmas exportadoras, para mantener el café fuera de circulación entre el 15 de julio y 15 de octubre, a una tasa subsidiada de 6%. Fuentes de la industria, indicaron que el éxito del programa había sido limitado ya que se estimaba que sólo 1 millón de sacos fue retenido, la razón, el país tenía existencias agotadas, probablemente este puede ser un nuevo intento de tener reservas estratégicas en el país, debido a la bianualidad de la producción y a los cambios de clima. En una entrevista, medios noticiosos reportaron desde Cartagena declaraciones del Director Ejecutivo de la OIC, estimando la producción de Brasil para la temporada 2011/12 de 37.7 a 40.1 millones de sacos, 15 a 20% debajo de los 47.1 millones producidos este año (según fuentes de la industria se produjeron de 50 a 55 millones), según José Sette el consumo de Brasil actualmente es de 19 millones de sacos y en los próximos años Brasil seguirá incrementando su consumo interno, hasta convertirse en el principal consumidor en el mundo desplazando a Estados Unidos, además de continuar expandiendo su producción y exportaciones de café.
**From Reuters. 

 

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Hi Jose

Sabes de diferenciales pagados FOB para cafes de Hue Hue. Igualmente, cuanto se paga el quintal pergamino seco en fincas en esa zona durante esta semana.
Hello Andres,

Huehuetenango coffee is still a month delayed for harvesting, differentials are up to +0.60. Right now we're handling the Extra-Prime markets here in Guatemala, dry prices placed in the fincas is around US$1.73 per lb. which brings it around $2.30 in green.

Saludos!



Andres Castro said:
Hi Jose

Sabes de diferenciales pagados FOB para cafes de Hue Hue. Igualmente, cuanto se paga el quintal pergamino seco en fincas en esa zona durante esta semana.
Up 15cents just since last Monday's greens order...

This isn't just something that will affect us next year, any coffee roaster in the US who buys spot his being really hurt right now by the enormous upswing.

-bry
3 months later up from $215.45 to $258.75. All told since my end of May 2010 order to today nine months later up 70.3% and still rising daily...

Mike McGinness said:
Up 15cents just since last Monday's greens order...

I posted something like this a few months back and got negative replies.....quite frankly its outrageous whats happening and it will truly affect specialty coffee indefinitely. Not only coffee...sugar, oil....etc etc. This doesn't do anything for the growers/farmers- it will affect them as well.  I would gladly take some educated answers that state whats "truly" driving these prices up up and UP!
From what I've understood, there's been plenty of bad crops all around the world during the last few years.

Robert Thoresen (namedrop, he's the first wbc-champion) told that the climate change is partly effecting the harvest seasons. The trend of bad crops is certainly on of the reasons affecting the price increases at both the specialty grade and the commercial grade of coffee. 

 

Especially during these bad crop years, I'm more than happy to pay some extra for my coffee because the growers truly need and deserve it. I know our customers won't mind paying little more either even if the didn't know the rise in the cost of coffee. 

 





Steve said:
I posted something like this a few months back and got negative replies.....quite frankly its outrageous whats happening and it will truly affect specialty coffee indefinitely. Not only coffee...sugar, oil....etc etc. This doesn't do anything for the growers/farmers- it will affect them as well.  I would gladly take some educated answers that state whats "truly" driving these prices up up and UP!

I'm really glad to read this conversation is picking up and that there is starting to be a new awareness on the subject. High prices have continued to surge since the date I posted this conversation, and to perpetuate our worries I will go ahead and say that coffee price speculation is aiming to close February and start March at $2.70; if the trend continues we'll see prices of $3.00 by May. Hope its not the case but the trend in coffee contracts and the internal market conditions of each producing country are sure setting us on that path. 

 

What's going to happen on the Specialty Coffees is that we'll just have to work harder to find them and get them, since there will be less available. I've been to the coffee plantations all around Guatemala these past months for the harvest and have seen how specialty coffee producers are starting to give away on quality and sell at the high prices the market is paying. Their rationale behind it that "why produce better coffee that costs higher, when they can get payed the same (and faster) if they sell their coffee without any quality control whatsoever." It is completely worrisome since I've seen how great coffees have been lost in a sea of the "not good enough". It's been hard to keep producers, specially small and associated producers, on the focus of quality and long term relationships. However there are few that remain honorable and true to coffee purity and direct trade. Hope many of them start to realize this as coffee prices stumble again in the next market cycle some years from now. 

 

In the mean time, lets continue to push quality, most of our customers will understand as many of you have stated here. 

And six days later up another 5% to $271.10. Up another $12.35 in just 6 days, scary ridiculous. Sure glad I ordered another Ton of greens yesterday when C way down at $260...

Mike McGinness said:
3 months later up from $215.45 to $258.75. All told since my end of May 2010 order to today nine months later up 70.3% and still rising daily...

Mike McGinness said:
Up 15cents just since last Monday's greens order...

So far since yesterday up $4 = up 1.45% in less than a day. Speculator investors gone wild... Wait just checked again, up another $1.45 to $276.55 while I typed this!

Its going steady, I think we're going to be seeing those $300 soon! 

Ridiculous, I believe, is the right word to use. 


Mike McGinness said:

So far since yesterday up $4 = up 1.45% in less than a day. Speculator investors gone wild... Wait just checked again, up another $1.45 to $276.55 while I typed this!

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