Physical trade in coffee from Brazil, the world's largest exporter, remained hard in Europe this week as exporters continued to demand more than European industry was willing to pay, traders said on Friday.
"Brazilian business remained intensely difficult this week, continuing the pattern seen for the last month or so," one trader said. "It was the same story: European roasters were demanding lower differentials to reflect the perception that Brazil is going to have a good harvest and to compensate for the high New York market."
"But the Brazilians were unwilling to cut prices enough and physical business remained in something of a deadlock." Another trader commented: "Demand for Brazilian beans was without doubt visible this week and some serious purchase talks took place."