GUATEMALA CITY, Guatemala coffee growers said Wednesday the local coffee market was at a virtual standstill as exporters refused to pay record-breaking coffee prices, and farmers were being hit by high margins in the futures markets.
"In Guatemala and internationally the coffee market is paralyzed, exporters have suspended their buying," national growers association Anacafe said in a statement.
A lack of liquidity to buy coffee at prices which are hovering around three-decade highs and slow buying by international roasters were behind the halt, according to the statement.
"Before, international buyers financed positions in the futures markets at the contracted price," Anacafe said.
"Now, it is practically impossible to take advantage of this mechanism because the coffee producers have to come up with the funds to maintain these positions."
Arabica coffee futures rose to a 34-year high on Wednesday and looked poised for further gains, boosted by both chart-based buying and supportive fundamentals.
May arabica coffee on ICE stood 3.90 cents or 1.4 percent higher at $2.9110 per lb at 1217 GMT after peaking at $2.9120, a 34-year high for the benchmark second month.
