Gil Carlos Barabach, an analyst with Safras e Mercado, explains that the current situation in the markets is becoming a real concern in the short term.
"If we analyze what happened with coffee [prices] since 2012, there is a lot of financial-related elements in this accumulated drop since 2012. This means that this negative signal from the financial markets is worrying because it has a direct negative effect on coffee prices," he said in an interview broadcast on Brazil's Canal Rural, on 18 March.
"What we noticed at the beginning of last year was that the price of coffee was rising from BRL400 per sack and producers were unhappy. Today, coffee producers are fighting to keep the price above BRL300 per sack. Last week ended with prices above BRL300 for the better coffees, but this week starts with a new test. The new price margin will be tested and it brings new concern. In this period, the price fell by BRL100 per sack for arabica beans and this removes the allure of coffee and explains the lack of enthusiasm among producers," Barabach declared.
