Falling prices of coffee marketing lock

The marketing of coffee on the market Brazilian physicist was fought in the last days before the fall of the prices recorded on the New York Stock Exchange this week. When the price drops out there, sellers are retracted awaiting the recovery of values. Yesterday, the contracts maturing in may retreated 2.5 percent, at $ 1,4950 per pound weight.
The stock market comment that the Brazilian coffee growers have handled the production. Eduardo Carvalhaes, Office Managing Director Catalin in Santos (SP), confirms that the negotiations are made the eyedropper. "But when the producer need to pay an item of expenditure, it sells grain," he says.
By their calculations, 4.5 million bags need to be sold per month to account for domestic consumption and export commitments. So, Catalin believes that negotiations will occur at certain times, though say that this week was just business. "In two, three days begin to exit the business," he predicts. The bag of good quality coffee was traded yesterday between $ 335 and $ 340, the same value practiced last week.
According to Roger Fávaro de Souza, JS brokerage house broker (MG), also there are few buyers for the coffee. "The market is not reacting and we don't know why this is happening," he says.
The broker added that there is much grain stocked and speculation about the volume of the next harvest (2013/14), which begins to be harvested in May. The national supply company estimates a production between 46.98 million and 50.16 million sacks, down 1.3% to 7.6% in relation to the 2012/13 cycle.