Abic says industry supply in Brazil will be ' tight '

"At the moment, the attention of the Associação Brasileira da Indústria de Café [Abic] is related to the supply, according to the information reaching us, that will be tight," stressed the Chief Executive Officer of entity, Nathan Herszkowicz during event in Sao Paulo.
The Executive explained that the Association does not count with a survey of the crop itself and therefore works with information coming from the market, producers and cooperatives, in addition to the national supply company (Conab).
"All of them indicate, for the time being, a tight supply. Clear that this will be very important to know the sizes physical inventories that will still be released by Conab. But anyway the numbers always carry more or less the following equation: Brazilian exports amounted to 36 million bags in 2014, and there is an expectation of exporters to repeat similar or slightly smaller volume. The coffee industry believes that we'll reach to 21 million sacks, "he points out.
Vintage
This means that in Brazil, in 2015, we will probably use the whole crop, whose number hovers around 46 to 47 million plus the remaining stocks-industries, general stores, exporters, for example.
To Herszkowicz, this account does not allow, in principle, imagine if there are surpluses, but it shows that the supply will be fair. "If in fact it is very tight, firm that quotes results we tend to have a high volatility until the end of the harvest," he says.
The Executive also explained that is not yet at the peak of the off season, which occurs in may, June and, before entering the new crop, we realized that coffee prices moved upwards. "Maybe this is the trend in the second half: with moments of high volatility, price recovery of low profit-taking."