The San Francisco call., 1906-06-21
The Coffee Trade.

The New York circular of Henry
NDrdlinger & Co. says OF coffee:
on the 2sd ultimO the stock at Rio
was recounted and showed an Increase
Of les 600 bags over the previously
published figures This increase in the
RIO stock in connection with large re-
ceipts at Rio and santos. and unusually
large arrivals OF mllCS In Europe, were
the causes which, despite heavy deliv-
cries from port stocks in Europe and
the United States, brought about a dis
sppointingiy small decrease in the vis-
ible supply OF the world for the past
month, This decrease amounted TO
4SAgog bags, against a decrease of
bgg.eVe bags last year, and one of s0,-
600 bags the year before last The to
tai decrease for the eleven months of
tle- current crop year was 100000
bags. as compared with a decrease of
100000 bags last year. and an increase
OF 1000 bags two years ago.
The prospects now are that the
worlds visible supply on the lst OF
July VIII be about 10000 900 bags,
= against ll,25O,o00 bags a year ago and
I2.sI5.0oo bags two years ago.
showing a considera bic Improvement
IN the statistical position, although not
as great an Improvement as we had
previously looked forward to. The i'm
prOvement IN the statistical position
was accompa MED BIZ a decline in the
price Ordinarily one would expect the
reverse 70 take place. Spectators who
were carrying the surplus stocks Tor
aboEt year and half witnessed from
month 70 month failure OF the mar
-ket 10 respond 10 the improved posi-
tion Of the article- their patience was
finally exhausted and they threw their
holdings overheard, thereby causing a
sharp decline. II is the general opin-
ion that the outside speculative in
terest Is now fairly well eliminated.
The bulk Of the stock Of coffee here
consists Of high gRades. There are still
plenty Of these 10 cover all possible
though they have been going out rap
Idly Of late and find favor with the
trade on account OF their proDOrtiOnste
eneapness IN price The large preml-
uns which have been ruling on low
grades during the present crop year
VIII most likely be considerably re
eeeea "a tae course OF next season II
TIE Information that the coming crop
viii consist largely of low grades
should prove 10 be true.
The receipts al Rio and Santos dur
ing this month are estimated at $500
bags. against receipts OF $4,000 bags
during the same month a year ago.
The receipts al Rio include a fair p0r-
Ilcn OF new crop coIee, and those at
Santos include the shipments which
were held back through the railroad
strike OF last month. The total re-
ceipts at Rio and Santos for the crop
year VIII be about l0.250,0O0 bags. and
may exceed this figure by 100, 900
bags which is a larger quantity than
We calculated on few months ago.
but more than million bags less than
the crop was estimated at a year ago.
Consumption OF coffee, as gauged
W TIE 4tllNtlLee from port STOCKS, mas
increased at the rate OF about per
cent per annum during the last ten
years, and this year will amount to
fully 1900 600 BAGS The stocks in
the interior OF Europe are reported as
extraordinarily light. and we believe
we DO rot err IN asserting that there
are no reserve stocks carried in the in
terror OF the United States. The deliv-
cries from port stocks during 1867
must therefore Ill the necessary re-
Quirements Of consumption and these
promise to be I7.OOG.0 900 bags II the
Rio and Santos crops together should
reach the prevailing estimate Of r.
000. 600 70 12,500.600 ba bags-which we
Doubt would in our opinion Just
about suffice for the worlds require
ments Of Rio and Santos coffee. and a
deficiency in the mild coffee crops
would bring about a further decrease
in the existing stocks of the world
during the next crop season"