[?]Y And Wherefore Of

World Coffee Price

future of the world’s coffee arket has been under review veral times lately. The follow s The Economist’s summary 26) ; ee is in surplus but prices are The paradox is easily ned. plies of mild coffee and high- Brazilian coffee are barely ate; it is the low grade ian and robusta coffees that are ful.

Central American crops of coffee are almost sold out, g Colombia as the only sub al supplier until the new crops te available in October or ibouts. Colombian coffee has :ly risen by $6 to about $79 per os f.o.b. ire is little high-grade coffee j Brazil, and prices have re ;d steady at about 480 s a cwt, for extra prime, h types are near the top prices Is season. i announcement of the long ed currency “reform” in Brazil emoved for a time fears of a nation of the exchange rate offee, and buyers may now te with more confidence, ile Brazil is able to dispose of gh grade coffee without diffi it is faced with a substantial ise in its total carry-over this When the season ends on 30 it is estimated that private > will amount to some seven in bags of 132 lb, compared just over three million bags a ago; in addition the Govern holds about three million bags, han half of which is believed of exportable quality. ; trade is naturally reluctant nance a larger stock and is mg the Government to relieve part of the burden. 3 increase in the carry-over is

more than enough to offset the sharp reduction in the 1956-57 crop, so that total supplies over the two seasons 1955-56 and 1956-57 should still be ample.