Copyright 2024 Octobermedia
Risks and Implications: The Crucial Role of Commodity Trade Finance
The pool of banks financing commodities is dwindling as the risks for those that remain grow.
Feb/Mar. 2024 - Banks decide to exit or reduce involvement in commodity trade finance due to regulatory changes, reputational risks, and financial performance. They may exit specific market segments while adapting strategies in response to evolving market dynamics. Credit tightening threatens the coffee trade in the current market, hurting producers as the initial link in the global value chain.
Each step in the supply chain requires financing to cover operational costs, manage risk, and ensure timely delivery.
There are signals that Dutch lender Rabobank, which closed its commodity trade finance desks in London, Shanghai, and Sydney in 2021 to focus on agriculture commodities, including coffee, may exit the sector soon...
Judy in Africa
Judy Ganes was on the road last week in the Ethiopian capital of Addis Ababa, where she attended and participated as a key speaker at the 20th annual AFCA Fine Coffees Conference & Exhibition.
Since the inaugural edition in 2004, this marks the 19th time she has attend the conference after missing the first and keeping a perfect record ever since.
Judy's well attended Risk Management workshop on February 7 covered trading and hedging using futures & options strategies, understanding basis risk, and the influence of certified stock on market spreads.
Judy's well attended Risk Management workshop on February 7 covered trading and hedging using futures & options strategies, understanding basis risk, and the influence of certified stock on market spreads.
"The coffee industry is about the passionate fusion of cultures and traditions," says Judy. "I am thrilled that I have become part of that tradition at the AFCA conference each year."
The week followed on from Wednesday's three-hour afternoon workshop with a presentation of the J Ganes Consulting annual Coffee Market Outlook at the morning session on Friday February 9, before attending the gala closer.
Celebrating 22nd Year of Consulting Services
J Ganes Consulting is celebrating the 22nd anniversary of providing strategic insights and value-addition to those needing analysis and advice on the fundamental drivers and price outlook for Soft Commodities and other agricultural products. A look back at some of the company milestones includes:• Over 2600 published subscription-based research reports• Additional Special Reports on timely and relevant topics• Authored major studies on weather impacts and long-term supply and demand projections • More than 150 speaking engagements in 40+ countries• Dozens of workshops and training courses held including risk management and trading using futures and options both in-person and online• Multiple global consulting projects including feasibility studies related to the Softs as well as on various other standardized and non-standardized commodities value chain and risk assessments• Recipient of awards in recognition of unconditional support and service to various coffee producing industries and associations
Judith Ganes, President of J Ganes Consulting has been a Soft Commodity market analyst/strategist for more than 40 years, having started her career on Wall Street at major brokerage firms. Ms Ganes is Co-Founder of Netherland based Taka Insights data analytics platform. She recently completed, with a Certificate of Excellence, a Massachusetts Institute of Technology (MIT) Education Program on Artificial Intelligence and No-Code Machine Learning. Ms Ganes has been quoted and interviewed countless times in major news media in print, radio, television, and social media platforms. She is Series 3 licensed and registered with the National Futures Association (NFA). Most of all Ms Ganes feels honored for the thousands of people she has met from the more than 100 countries she has visited and shared knowledge with about the markets, as well as the wealth of cultural experiences she has had the privilege to accumulate on her travels.
Brazil Tour
Judy Ganes returned from her latest junket to Brazil, her fifth field trip to the country since December 2020, with fresh insight into the state of the world's most important coffee crops. Over 10 days she visited areas in Zona da Mata, Minas Gerais and others to assess the 2023 outlook for the world's most important coffee producer. If you would like to gain access to this incisive, firsthand analysis of coffee and other softs, contact us via the link above for detailed product and pricing information.The Coffee Grower's Conundrum
This is Paolo. A 70-hectare coffee grower at 1,200m in Campos Altos, MG. He has held off selling his crop, wanting higher prices to cover rising costs. He is willing to see how production and prices are in 2023/24 but if he can’t meet expenses he will convert his farm to corn or soybeans. Read more...Three views from the field
#MatasdeMinas tour notes: three different views from a week visiting farms in eastern #MinasGerais: 1) very little coffee; 2) a medium amount (rather disappointing for the grower) and 3) an excellent crop. The third condition was the rarity. Very few farms had strong production. Read more...
Food Inflation: Many factors at play
Judy Ganes on Bloomberg Surveillance
- June 10, 2022While core commodity prices have risen on weather problems, higher ingredient costs are only partly to blame for consumers paying more for food this year. Judy spoke to the Bloomberg Surveillance team, audio file embedded in video link here >>>
2021-22 Brazil Tour Video
Coffee Safari in Piumhi, Mina Gerais, Brazil
Judy Ganes felt like she was on a Safari hunting for coffee at this 2,000 hectare farm in Piumhi, MG Brazil. Despite irrigation, finding branches, let alone trees, with a heavy fruit load was elusive. Spotting a small cluster of cherry and even a single one in this area of the farm was like coming across Big Game in a jungle thicket...
Observing Mechanized Robusta Harvest
Judy climbed atop the mechanical harvester at Fazenda Montealverne in Pinheiros, ES, Brazil July 8, 2021. The farm also has pívot irrigation. This method can harvest 80 bags of coffee in 40 minutes and save 80% on labor!
Regional Dryer Operator: Brazil Robusta Crop Shocker
In seeking out the unbiased truth about the crop size, who better to interview than the man that dried the coffee for the región I was visiting. He said farmers were surprised and disappointed st the lower yields.
Brazil’s Frost May Kill Young Coffee Trees, Hurt Crops for Years
Above: Reiner’s young coffee trees that were damaged by frost in Monsenhor Paulo municipality, Minas Gerais state, Brazil. Courtesy: Joseph Reiner
By Fabiana Batista and Marvin G PerezJuly 22, 2021, 6:52 PM GMT+2
The severe frost that ravaged major arabica-coffee areas in Brazil earlier this week is especially deadly for young trees, which could greater losses for farmers and hurt production for years.
The death of young trees increases the likelihood that the crops even two years from now will be compromised, according to Judy Ganes, a consultant who has covered the market for more than three decades. Farmers will have trim off damage, destroying yields, or replant their fields. (Full story here)
The death of young trees increases the likelihood that the crops even two years from now will be compromised, according to Judy Ganes, a consultant who has covered the market for more than three decades. Farmers will have trim off damage, destroying yields, or replant their fields. (Full story here)
A must-have look at coffee market fundamentals. Each week, get our analysis and opinion reflecting decades of coffee market experience, from boardrooms to plantations. Published a minimum of 47 times per year.
A vital resource for anyone needing to understand the dynamics of softs markets. Each week you’ll get into coffee, cocoa, sugar, cotton and orange juice from production yields to pricing dynamics. Published a minimum of 47 weeks per year.
Each month the Softs: Fast Facts report provides detailed datapoints and analysis on coffee, cocoa, sugar, cotton and orange juice markets. Topics include economic and political influences on the markets, weather, pertinent statistics, as well as predicted relative market strength.
Six times a year, the Coffee In-Depth report provides invaluable context on pricing, supply & demand estimates and other key factors affecting the coffee market. Your one-stop shop for independent, unbiased commentary from one of the most seasoned soft commodity experts in the industry today.
The Softs: In-Depth Report looks at key factors, critical trends and issues affecting the price of soft commodities. We bring incisive market analysis, context and opinion to the most timely issues. The last word on pricing, supply and demand estimates and other key factors affecting softs markets.
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