Brazilian Market Summary – October 2015
Trading Activity has improved during the month. Lower grades and medium to good beans continue to be the focus of buyers for crop 15/16. New crop offers still remain scarce with shy sellers. Exporters are afraid of the future due to the strange weather conditions during the last two years.
‘Rain, Rain don’t go away come again another… rain non-stop through out the Brazilian Southeast regions, including most of the coffee belt. The weather has changed drastically in November bringing substantial amount of water to the plantations. The fruits from the flowering fixed well and optimism towards crop 16/17 is again high. Average expected crop estimates remain at 60 million bags due to the possible loss in the Conilon/ Espirito Santo region. With the intense ‘El Nino’ effect this year we should continue to see substantial rains in the coffee belt / Southeastern Brazil during our summer, however high temperatures during the sunny days is still a concern to many Brazilian producers as it might damage the bean growth during months of December and January. The biggest concern among producers for the future is the shift in weather pattern all over the Brazilian coffee belt. This is a fact that may change coffee producing location during the next ten years inside Brazil.
Plantations condition is looking good after all the rains during the last week of October and first week of November. The interior of Brazil is as ‘green as it can get’ during this spring season. The fast recovery and fixation of the coffee beans is also noticeable in all plantations around South Minas. It is important to mention the amount of new plantations and investments noticed during our trip last week through South Minas (Poços de Caldas, Areado, Alfenas, Varginha and Boa Esperança) in big farms. But one must remember that 75% of the Brazilian production comes from small producers (max. 50 ha)!
Export Volumes/Shipment pace
Export volumes are as follows during 2015:
Jan-Oct 2015: 29,852,943 bags
Category: Articles
