Brazil Preparing To Flood The New York Coffee Market With Beans
From: bloomberg.com
Brazil is set to flood the New York market with rare coffee cargoes as stockpiles that back futures contracts dwindle to the lowest level in more than two decades.
Major traders are preparing to ship Brazilian coffee to warehouses approved by the ICE Futures U.S. exchange starting in September, said people familiar with the process, who asked not to be identified because the information is private. The beans will be sampled, graded, and if approved, could represent the first significant increase in exchange reserves from Brazil since 2017.
A bumper crop and a weaker Brazilian currency have made the country’s beans more competitive than the washed-arabica type from Central America that usually backs the New York exchange. That’s supporting the planned shipments as traders continue to draw down exchange inventories, with bourse data showing stockpiles at their lowest level since 2000.
