March 17, 2013

GOLD-BUGGERED AGAIN:

Coffee-Bean Prices Sag (LESLIE JOSEPHS, 3/17/13, WSJ)

Mounting stockpiles of arabica coffee around the world have soured traders' outlook on the commodity, pushing prices down to a 33-month low.

Arabica coffee in 60-kilogram (132-pound) sacks stored in exchange-certified warehouses rose to more than 2.74 million bags Friday, up 6.7% from the start of the year.

Beans are also accumulating in Brazil, the source of about one-third of the world's coffee. Growers there have been holding back some of their crop, waiting for higher prices. According to Safras & Mercado, a Brazilian consulting firm, farmers there had sold 71% of their 2012 crop by the end of February, down from 87% at the same point last year.

"There's too much Brazilian [coffee], too much arabica," said Thiago Cazarini, a coffee broker based in Varginha, Brazil.

Posted by at March 17, 2013 5:43 AM
  

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