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May, 2009
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GREEN COFFEE NEWS
SPLIT PERSONALITY
STEVE RUIZ, GREEN COFFEE BUYER
As Spring arrives, we are seeking the road to recovery.
A very painful and rough process still awaits but we do see some signs of life ahead. There exist some crucial coffee issues to address, but many of these are more timing than long term supply related. It is true Brazil is facing an off cycle this crop year. Colombia has faced some crucial weather problems which has delayed the arrival of much needed coffee and that has certainly manifested itself in tremendous premiums for this coffee.
Smaller and late arriving new crop coffees from Central America has compounded the trouble seen in Colombia and the smallish Brazil crop. The lack of speculative capital has kept the futures market rather subdued with prices remaining below $1.20 despite the supply issues with better Arabicas. All of this while we are in the midst of our busiest of seasons - Winter.
For now we play a waiting game while the better Arabicas are slow to arrive and the prospects for ample supply to catch up with pent up demand still seem out of balance. Mexico, Guatemala, and Costa Rica are prime areas of supply but for now, supplies remain tight and offers scarce.
We’ve been able to take advantage of some excess inventory to cover our Winter needs and do not anticipate any trouble in maintaining a steady supply. What has been impressive is the quality of all origins. In the face of this adversity, we have seen some of the best and most consistent qualities in recent memory. We’ve gone out of our way to share these comments with our suppliers and hope this leads to improved quality in the Spring.
We do see opportunities ahead as we have always sought value and with the ongoing economic firestorm, we feel perfectly positioned to capitalize on and offer what has always been our primary focus - great coffees at great prices.
Come taste for yourself.There is some serious posturing taking place within large roasting companies and even larger trading companies as both grow very wary of the problems which lie ahead.
We too have cause for concern as the supplies of these coffees have tightened and will be a true test of loyalty as the shrinking supplies are allocated to those who hold valuable contracts. We are not immune from these potential problems, and will likely be affected by the actions and reactions of our colleagues and competitors. We remain confident that there will be no supply interruptions and the inventory we maintain will more than adequately cover us into the Summer.
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