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BRAZILS WEATHER WORRIES FARMERS AND PUSHES COFFEE PRICE

brazil coffee farmers worried

Brazils coffee farmers have taken to social media in recent days with pictures of their crops, and the story they tell is not a pleasant one.

Dry branches and leaves on parched land paint a grim scene reflecting the consequences of such a deficit in rainfall from the norm.

In the last two months, the southern part of Minas Gerais received 23mm (0.91 inches) of rain, about one third of the normal rainfall during the period, 68mm (2.68 inches)

In some regions the deficit has been marked as 100mm (3.94 inches) vs expected rainfall for the period.

Some analysts are still hopeful, saying that the trees can still recover if rainfall comes later before October. We’ve published the 14 day weather and precipitation forecast below.

Regardless of the level of impact the weather has already had, everyone agrees new rains are urgently needed to save the crop.

That is near the maximum stress coffee trees can endure,

Jose Braz Matiello, a coffee expert at Procafe

Coffee prices have already surged to their highest levels in eight months last week as speculators piled into long positions (where they purchase regular stocks in the market, i.e. hold them for the long term). Analysts attribute the increased interest in long coffee positions in part to the crop situation in Brazil

Written by Nick Baskett

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