We had already highlighted in a feature article earlier this year that Brazil's coffee exports in 2012/13 (Apr/Mar) were set to fall despite a sizeable increase in output in Brazil's on-year as growers withheld beans early in the season in the hope that the fall in price may be arrested in the course of the season and they would then be able to sell their beans at a better price. Despite the fact that not only our balance sheet but the forecast of almost every coffee analyst in this world pointed toan oversupplied market in 2012/13 Brazilian growers were encouraged in their behaviour and belief in rising prices by the Brazilian government, which in late April 2012 approved a BRL900 mln ($1=BRL1.88) credit line for coffee producers to stock part oftheir upcoming crop.
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