Stock exchange news. At the and of September 2010/11 crop year finished in all exporting countries, having provided the world with about 133.6 mln. bags of coffee, whereas its consumption has reached 135 mln. bags during the year. CONAB (National Supply Company) warns that this year (October 2011 – September 2012) production in Brazil may decline to about 43.15 mln. bags, versus 43.54 mln. bags predicted in May 2011. Besides, ICO members are currently predicting the world production to amount to about 130.000 mln. bags, which is 5.000 mln. bags less than predicted in May 2011. Analytics of the Department of Derivatives Trading claim that shortage of stocks and production will raise coffee price.
During American session on October 11 the price marked the bottom line at the point of 221.65; it has not passed last week’s minimum, when coffee price was raising non-stop. The market remains within flat as long as significant long-term factors indicate price rise. In September coffee price dropped due to strong American dollar and set long-term positions of investment funds (according to ICO).
Neither last week’s top line, nor its bottom line has been passed. Uptrend of coffee price is yet to be expected after another fight between sellers and customers.
