The San Francisco call., 1907-02-21
THE coFFEE TRADE
The visible supply Is Enormous, bui
the Consumption is Large

the Consumption Is Large
The New York circular OF Henry Nordlinger
& Co. says: ''Our last report was dated ,l.oe one
18Th ult The receipts at Rio and Santos since
then have shown marked failing on lnl me
falling Of curing the second half OF January
/ as compared with the first half OF that month
ernounted to 81 per cent and since then there
has been q further reduction In the oally re-
6eipts indicating receipts for tne mOnth OF
February of about one-hslf Of what they were
n January. a visible supply OF 10, lSS'oOO pagS
existed on the 1st inst we expect gradual
reduction until the END OF the crop year;
amounting 10 about !. 600 bags. Wnicn Wouio
leave visible supply Of the world OF about
lg 875. 600 bags on July I next about 5,foO, OoO
bags more than al the beginning OF thls crop
year and j 900 900 bags IN excess OF the largest
visible ever known on the lst OF July IN an!
..sueh an enormous visible supply certainly
does not offer any inducement for bull speculation,
were II not for the accumulation OF the surplus
Of the production by the governments OF the
sCofee-erowinC states Of Brazil, and a continued
ACQUISITION Of exchange delivery contracts or
Z nearby months on the psrt Of one Of the most
powerful interests in the coffee trade This
F ecUisftiou has been added 10 daily. and we
have no doubt that that particular interest VIII
receive every bag Of coffee it has purchased II
IS difficult TO estimate the quantity thus ac-
+ cuu1ulated, but judging rrOm the unintesrupted
manner in which these purchases were being
made think that they amount now 10 a
very large ngure, 50 large as 10 approAlnateIg
take in all Of the conees which have heretofore
been carried by bankers Tor the good rate or
interest which spectators were paying ior tne
. carrying OF their cOnrrGcIs. The longer the
policy IS pursued Of receiving and locking up
cofees delivered against exchange contracts the
more difficult Il viii be for those who have sold
Ggainst their importatOns Of commercial grades
10 undo their hedges satisfactorily, and inas-
much the Brazilian governments have been
and still buying high grades Of the present
. crop, paying a premium OF as much as 1Ac
over the prices ruling in consuming markets,
fresh importGtions OF commercial and high grade
cofees have been made impossible
SUPPLY AND DEMAND
During the last three OF four months an enor-
nous demand sDrang up for old crop Santos. no
matter how high the grade, in consequence OF
which all Of the Santos cOSees which have been
carried here FOR years against coffee exchange
, contracts have become desirable cofIees. much
50 that they are now bringing a premium Of
anywhere from 1A4lc per pound above basis Of
price ruling on the exchange.
I'VE call attention 10 the fact that while the
worlds visible supply is enormous the available
visible supply for the trade is millions Of bags
/ smaller. and win probably not amount TO more
than 1000 600 bags on the 1st OF July. which
makes the position Of available coffee very much
stronger than IL appears 10 be the surface.
with regard 70 the growing crop-the 1907
, 1908 crOD-rhe reports received by OF late
continue to be Of the same tenor as those re-
Santos crop VIII be the smallest have en-
countered In many years The Rio and Santos
crop combined VIII probably fall short Of the
requirements Tor consumption 10 the extent Of
1900 600 bags; other houses claim Cat the
shortage VIII be much larger.
Mild sorts are In light supply, the visible
supply OF same being now only 1,500. 600 bags as
/ compared with about 2. 600 900 bags the same
time last year and $3.50. 900 bags two years ago.
The arrivals during the past seven months were
1,tll,uoO bags, against 1900 900 bags the same
period last year. and 2. 300. 600 bags two years
ago. The mild crops are late in coming In but
when they begin 10 move more freely the deici-
ency IN the receipts VIII soon be made up as
tnese crops are fully as large as last year"