24 April 1998
Central American coffee producers to ditch CSCE?

CENTRAL American coffee producers are considering leaving New Yorks Coffee, Sugar and Cocoa Exchange over plans to allow Brazilian coffee to be deliverable against the exchanges benchmark Coffee “C” Contract.

They say the introduction of large quantities of Brazilian washed arabica would distort the market and affect the demand for their own crops.

Meanwhile, coffee plummeted on the London International Financial Futures Exchange yesterday with the July contract ending at $1,760/ t, down $156 from Wednesdays close.

Wheat futures on the Chicago Board of Trade rallied after weekly export figures came in at the upper end of market forecasts, but news of improved growing conditions in Australia and Canada put pressure on prices. By midday the May contract was trading 3¢ lower at $2,925/ t.