NEW YORK (WSJ) — Mounting stockpiles of arabica coffee around the world have soured traders' outlook on the commodity, pushing prices down to a 33-month low.
Arabica coffee in 60-kilogram (132-pound) sacks stored in exchange-certified warehouses rose to more than 2.74 million bags Friday, up 6.7% from the start of the year.
Arabica coffee sacks in warehouses are up 6.7% from the start of the year. Above, coffee berries are inspected in Cundinamarca, Colombia.
Beans are also accumulating in Brazil, the source of about one-third of the world's coffee. Growers there have been holding back some of their crop, waiting for higher prices. According to Safras & Mercado, a Brazilian consulting firm, farmers there had sold 71% of their 2012 crop by the end of February, down from 87% at the same point last year.
Of course, the "scientists" tell us the "consensus" is that global warming is well on its way to wiping out coffee beans altogether. Go figure.
You can count me in the camp that's not sufficiently swayed.