Saturday 25 May 2024
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Brazilian coffee farmers fear the influence of La Niña in the coming weeks, Cepea reports

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SAO PAULO, Brazil – The recent rains observed in several coffee-producing regions in Brazil may have been enough to induce an early blooming – some farmers have reported flower buds in some crops, Cepea observes in its latest report. However, this scenario is concerning the agents in the sector, since the influence of La Niña in the coming weeks added to the typical low rainfall in August may hamper flower set.

In the Brazilian spot market, the prices for arabica coffee fluctuated in the first half of the month. On August 15, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,298.88 (USD 255.03)/bag, a slight 0.15% lower than that on July 29. Thus, agents stayed away from the national spot market.

La Cimbali

Robusta

The weather is currently dry and firm in the robusta-producing regions, and rains are necessary for blooming to occur. Despite the lack of rains in the major robusta-producing states, Espírito Santo and Rondônia, some farmers are opting to induce blooming in some areas.

Gimoka

In the spot market, Robusta prices increased, due to the higher number of purchasers buying higher volumes. On August 15, the CEPEA/ESALQ Index for the robusta type 6, screen 13, Espírito Santo, closed at BRL 729.22 (USD 143.18)/bag, 1.9% up from that on July 29.

Exports

The 2022/23 exporting season began in July, slower than that in previous years. According to data from Cecafé, in July, Brazil exported 2.4 million bags of coffee (green beans, roasted and soluble), 22% less than that in June and 14.9% down from that in July/21.

According to Cecafé, the lower exports performance in July was still linked to logistic issues around the world and higher demand from Brazilian coffee roasters for robusta, which limited the volume exported. However, shipments are expected to increase from August onwards, due to the higher supply of arabica coffee in the market.

CIMBALI

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