Brazilian coffee growers are optimistic about the scenario for 2008, due to the moderate supply and low stocks. Last days, exporters were more willing to trade in the coffee market, focused on fulfill shipment of this year. The volume available, however, kept moderate. On Friday, Dec 14th, the CEPEA/ESALQ Index for arabica type 6, delivered in Sao Paulo (capital) closed at 262.10 reals or 145.86 dollars per bag of 60 kilos, upping 3.53 percent in Real over Nov 30th.
According to the Council of Brazilian Coffee Exporters (Cecafé), the domestic supply will be enough to attend the demand of importers in this year. The Brazilian Association of the Coffee Industry (Abic) forecasted the national coffee exports at 28 million bags for this year. Even with the lower domestic production, from January to November, Brazil has already exported 25.4 million bags, volume 3.7 percent higher than in 2006. It shows that exporters had to utilize stocks, reducing them even more. This scenario, aggravated by the increasing consumption, has been concerning the sector.
Regarding the weather conditions in Brazil, rainfalls have been helping fields. If the weather keeps positive until the harvest period, in April 2008, the culture should register good productivity.
The Brazilian 2007/08 coffee crop should total 33.7 million bags of 60 kilos, 3.37 percent higher than the forecast of August - according to the National Company for Food Supply (Conab). At the moment, players are waiting for the first numbers about the 2008/09 coffee crop, which should be published on January 8th. From 2008 on, the National Company for Food Supply (Conab) and the Brazilian Institute for Geography and Statistics (IBGE) - both from federal government, will release information about crops together, published separately before.