Evening star., 1924-07-09
COFFEE PRICE FIRM
DESPITE BRAZIL ROW
Cost on American Tables Lit
tie Changed by Outbreak.
Supplies Heavy.
BY j. C.. ROYLI;.

Speclhi Dispatch TO The Star.
NEW YORK, July 9.-Despite the
claims and counter claims as to milf
tary successes in the revolution now
in progress in the state of Sac Paulo,
Brazil, neither the supply nor the
price of the coffee which finds its way
onto American tables seem likely to
be long or materially affected. From
reliable reports it is indicated that
the coffee industry of Brazil is indi
rectly responsible for the revolution,
and the exigencies of that business
seem likely to bring it to a speedy
end
For q long time the government of
Brazil has attempted. through gov
ernmental action, to regulate the
price OF coffee. One measure taken
has been to restrict the amount Of
coffee shipped to the remainder of the
world daily through santos, the main
coffee shipping port of Sac Pauio,
To some interests that has not been
pleasing in view of the prospects for
II rather small Brazilian crop and the
relative firmneSs of foreign demand.
The worlds visible supply of coffee
now is estimated at 5,02l 900 bags,
compared with 5,236,0 900 bags a year
ago.
British OrerpIayed Market.
There is every indication that this
situation had material bearing on
the armed revolt against the Bra
lillian federal government. Normally,
a revolt affecting one of the main
outside world would have tended to
cause Il sharp advance in prices. That
movement. This is attributed in
effect has not followed the present
markets here to the fact that British
speculators overpla yed their hands.
For many months Brazil has been
endeavoring to obtain loan from
British sources to aid its co1ee
valorization scheme and the British
dealers have been in close touch
with affairs. Traders here assert
English spectators had advanced IN
forrra tion of the revolutionary move
ment and bought heavily before it
took place. This had the effect of
raising prices on futures ana when
Sac Pauio was seized by the rebels
the spectators decided to unload.
That move seemingly defeated its
own purpose. for the selling orders
came in such volume as to minimize
the price increase which naturally
might have been expected.
Spot Coffee Higher.
It is true that spst coffee has been
advanced to higher levels, but fu-
lures nave not SNOW II SNl t4i . Ill
Well informed men in the trade as
sert this tendency has been empha-
sized by the belief that 1t viii be
but a little time until conditions are
composed and that shipments VIII not
be materially delayed. No matter
who wins the revolution. they will
need cash and the quickest and most
obvious way of getting 1t Is TO re-
sumo coffee shipments from Santos
Stocks of coffee now in the United
ND n a
coffees. are estimated at I6O,0il bags
as Of July /, and 62T. 400 bags atioat
for this country from Brazil, Europe
and Java. Santos stocks at 1,236,OoO
bags and Rio stocks at 2I2.oO0.
Recent imports through New Orleans 5
report showing receipts there to the
value Of S5.300,000.
Huge Increase in Demand.
Not only has coffee consumption in
creased tremendously in this country,
but the European demand has
strengthened to an unusual degree,
The five million or so bags on hanu
at present constitute the carryoFer
from the 1924 crop. which through
ont the entire world amounted to
above 26000,000 bags. The coHee
wear officially ended July !, when the
new crop began to be available. ne :,
Brazilian new crop, which now shouid
begin TO come on the market, Is estl-
mated at only about 10000, 900 bags,
or 60 per cent of last years outturn.
There is very indication that con-
sumption between now and next July
throughout the world Will exceed
90. 900 bags. With the preseht
carryoyer and the shortness OF the
Brazilian crop, world production is
expected to do little more than meet
cOnsumptive requirements. There is
every evidence that these facts were
carefully considered before the revo-
Imtionary movement was started in
Brazil.