Coffee: roasters to import or cover the external quote to hold the grain here

Brazil could be walking into the “unimaginable situation” of having to import coffee to supply the domestic industrial market, as the result of a crop ruined by droughts and frosts.

The incredulity of analyst Marcus Magalhães is not an exaggeration in dealing with the largest world producer. The final level of production and inventory will not allow the country to breathe a sigh of relief by January or February.

Take a note of these two months, which Magalhães believes will be the most sensitive because there will be no more coffee in inventories.

Exports will even fall in the 2021/22 cycle, by 38 million bags (18% less than in the previous cycle), according to crop and market estimates made even before the worsening of the logistical conditions impairing the external corridor.

Is the solution to sacrifice exports even more?

A superintendent of a large cooperative thinks Brazilian roasters will have to adjust their prices to compensate for the supply that would have been exported. “Because importing would be more expensive,” he says, asking to remain anonymous in the face of a moment considered very delicate for the cooperative.

Source: Money Times

To read the complete original article, access the link:

https://www.moneytimes.com.br/no-no-mercado-ou-torrefadoras-importation-ou-cobrem-a-cotacao-externa-para-segurar-o-graft-aqui/

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