BRAZIL
Two years of drought in Brazil and this year’s heavy rains led to poor harvest conditions in Brazil. The export association Cecafe reported the country has had to draw down on its reserves in order to meet export expectations. This scenario has been a boon to Vietnamese coffee concerns. Many there capitalized on price pressures and also released coffee stocks to take advantage of this volatility.
In a Credit Suisse press release, Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added: "The potential for a La Niña event later this summer may further tighten supply expectations across agricultural commodities."
Even with better than expected reports on harvest levels, futures pricing for Arabica and Robusta continued to be dynamic through June and early July.