At the beginning of each month throughout 2022, our blog will highlight suggested action items and reminders for green-coffee buyers to successfully contract desired volumes, qualities, and delivery times for the Peruvian harvest season.
November has arrived with continuing unfortunate news of defaulted contracts and highly volatile market conditions. On the cusp of a recent dip in price with the NY C market price, cooperatives and other private mills were faced with coffee delivery shortages from the field.
Many producers often store parchment on their farms until market conditions are most favorable for them to sell, or they are simply in need of funds and deliver their harvest when needed. Cooperatives and other private collectors in the area estimate volumes that are expected to be delivered on an annual basis. This year, mills have seen drastic shortages of coffee deliveries from producers. While this shortage continued for several months, the recent dip in the NY C market price has shifted many producers to reconsider their positions, in part due to fear of a continued decline in price. These late deliveries have caused a double edge sword for many traders.
Some producing areas are starting to see an increase in coffee deliveries from the field. This added volume, along with some remaining coffee inventory from contracts that were not fulfilled, has created a slight increase in availability and additional offers late in the season.
Shipping coffee out of Peru has been less chaotic than the pandemic harvest of ’21, yet still struggles to regain optimal levels of efficiency. The holiday season begins with most shipments seeing a possible one-to-two-month delay. As last year, November shipments may lead into ’22 December shipments with late Jan/Feb ‘23 arrivals. If Peru is needed to bridge or fill inventory requirements, please contact ElevaFinca for new contract offers and/or spot positions that may be available through domestic importer partnerships.
ElevaFinca shifts its offerings to Santa Marta, Colombia to focus on the results of their main harvest. Please visit our Colombia offering sheet for more information.
For an overview of the entire annual calendar of activities, you can download it here.
Our latest coffee offer is constantly updated here