| graphy for coffe consumption |
You saw it last year with oil: When prices began to fall, Saudi Arabia,
the world’s largest exporter, ramped up production to protect its market
share, instead of going the conventional way and holding back
production to drive prices back up.
Now the same scenario is unfolding in the coffee market – coffee futures fell the most in seven months after Colombia announced that it would increase exports in the face of low global prices, to protect local farmers’ earnings.
The ongoing El-Nino drought in South America has lowered the quality of Colombian coffee, the third-largest producer after Brazil and Vietnam, and Colombia is trying to sell off as much as it can of the remaining good harvest.
Now the same scenario is unfolding in the coffee market – coffee futures fell the most in seven months after Colombia announced that it would increase exports in the face of low global prices, to protect local farmers’ earnings.
The ongoing El-Nino drought in South America has lowered the quality of Colombian coffee, the third-largest producer after Brazil and Vietnam, and Colombia is trying to sell off as much as it can of the remaining good harvest.



