Brazil’s Coffee Growers Seen Holding Back Beans on Minimum Price

Coffee producers in Brazil, the world’s largest grower, are holding back beans on speculation the government will raise the minimum price for the commodity, according to Rio de Janeiro-based Flavour Coffee.

The Agriculture Ministry planned to announce a new benchmark in Brasilia yesterday and then canceled. The minimum price guarantees growers receive enough money to cover costs of production. When prices fall below it, the government takes action including buying stockpiles or paying producers the difference between the minimum price and market prices.