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Brazil Coffee Crop Seen Rising After 2017 Trails Forecast: Ecom
2017-11-29 13:00:00.1 GMT
By Marvin G. Perez
(Bloomberg) -- Rains have been good so far for 2018 crop, signaling bigger output as nation gears up to collect high- yielding half of biennial harvest, though it’s still too early for an estimate, Jorge Esteve Jorge, vice president for commodity trader Ecom Trading says in telephone interview from Sao Paulo.
* Espirito Santo is the only area in need of more rain to refill reservoirs that are running low
* Nation’s current 2017-18 crop probably totaled 52m-53m bags, below initial expectation for as much as 55m bags; bag weighs 60 kgs (132 lbs)
** Some beans didn’t develop fully in some areas, while lack of rains also spurred coffee-berry borer disease in parts of Minas Gerais, an abnormal incidence level that could hinder next year’s yield
** With Brazil’s consumption near 21m bags and exports of 32m-33m bags, country needs to replicate at least this year’s output to meet demand; rain will be needed in coming months for beans inside cherry to fill up
** Sees prices staying $1.20-$1.35/lb on ICE Futures U.S. in New York, supported by tight differentials in the domestic cash market, while ample global supply would limit upside
** NOTE: Ecom is world’s second-largest coffee trader
To contact the reporter on this story:
Marvin G. Perez in New York at email@example.com