03-19-2013 09:13 AM
I have received two e- mails this morning that our good friends over in China have cancelled -----------------------------2 MMT of beans from Brazil !!!!!
That is 33 cargoes !
Reason was -- Brazils SLOW shipping -- NO chit ? I would have never made the connection .
Any bets there have 100% coverage - and late shipment just gave the the reason needed to back out ?
then rebuy them this summer -- for what ?? A LOWER price ? --- No they won't do that would they ? lol
Looks like this could really screw NEW beans prices !
03-19-2013 10:44 AM
It was only a matter of time before they did something like that with the crop size as big as it is. They have enough inventory to do something like that knowing that the beans will eventually get out of S.A. We knew many weeks ago that S.A. was going to produce 25% more than a year ago. Now that the midwest is getting some drought relief that is the second foot to drop on prices. The long tail might not be that long afterall.
03-19-2013 11:56 AM
They will keep beans coming one way or another. If they have to make our CO tighter they will. If your reaction is typical it would be perfect. On the other hand there could easily be an argument this drives beans higher.
If you can't get them out of SA then you pay the piper competing for NA beans.
The question is how does that many ships affect the conveyer belt to China? They can't necessarily handle more ships/week later. Just depends.