Reuters exclusively reports major commodities traders sue Brazil coffee farmers for defaults

Reuters exclusively reported that commodities traders including Louis Dreyfus, Olam and Volcafe are pursuing legal action against hundreds of Brazilian coffee farmers whose failure to deliver on pre-agreed sales has left the merchants exposed to losses. Arabica coffee prices have rallied some 60% this year due to climate turmoil in Brazil. The price surge has tempted farmers to default on sales, tightening supply in a commodity that, like many others, has been affected by shipping delays and reduced availability of labor.