Lack of rain and high temperatures during the flowering period continue to worry the sector
The first trading session of the week ended with a 4.01% appreciation for the Arabica coffee futures market on the New York Stock Exchange (ICE Future US). “Arabica coffee prices on Monday extended last week’s high and soared to a 1-month high with signs of a dry coffee crop in Brazil,” highlighted the analysis of the international website Barchart.
The coffee market operates with appreciation since last week and supported by the conditions of the coffee industry in Brazil. With the prolonged drought and the two episodes of frost last month, the numbers for next year’s production remain uncertain.
December/21 had an increase of 770 points, worth 199.90 cents/lbp, March/22 had an appreciation of 765 points, quoted at 202.40 cents/lbp, May/22 had an increase of 760 points, quoted at 203.40 cents /lbp and july/22 ended at 203.95 cents/lbp, with an appreciation of 750 points.
The all-important flowering period for Brazilian coffee trees starts next month, and the lack of rain could reduce the flowering of coffee trees and further reduce coffee production. Also according to the publication, Somar Meteorologia said on Monday that coffee growing areas in Brazil may experience drought conditions and temperatures above normal in the next two weeks, which will further reduce soil moisture levels . “The availability of water in the soil of Minas Gerais is already at critical levels between 0% and 30% when the minimum level for crop development is 60%”, he adds.
Producers wait for the rains to return to understand the real impact of adverse weather conditions on production. For this week, the National Institute of Meteorology (Inmet) forecasts the return of rain to Minas Gerais, but without reaching all areas of the coffee park.
The Reuters news agency also states that Fitch Solutions pointed out that prices tend to continue to rise with the extent of damage to Brazilian crops after the frosts are getting worse.
clearer. This comes at the same time as a shortage of containers and the rise in Covid cases are disrupting export logistics in Vietnam.
In Brazil, the domestic market followed and ended with appreciation in the main trading markets in the country.
Type 6 hard drink bica race had a high of 2.91% in Guaxupé/MG, traded at 1,132.00, Poços de Caldas/MG had a high of 1.89%, quoted at 1,080.00, Araguarí/MG had a high of 3.70%, worth R$ 1,120.00, Varginha/MG recorded an increase of 1.33%, worth R$ 1,140.00, Campos Gerais/MG had an increase of 3.65%, worth R$ 1,137.00 and Franca /SP ended with an appreciation of 4.95%, worth R$ 1,165.00.
The peeled cherry type had an increase of 3.04% in Guaxupé/MG, traded for R$1,185.00, Poços de Caldas/MG had an increase of 1.67%, worth R$1,220.00, Campos Gerais/MG appreciated of 3.46%, worth R$1,197.00 and Varginha/MG had a drop of 1.27%, worth R$1,170.00.
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