Growers start to harvest little by little

Brazilian coffee growers have been starting, little by little, arabica harvest activities from the 2007/08 crop. However, a larger volume should be available in the market only from the end of May on.

In this context, growers have been trading the product from the 2006/07 crop, in order to make cash. It is important to remember that a significant volume of the previous crop is still with growers.

The Brazilian government liberated more than 90 million reals to growers for 2007/08 crop expenses - it was approved 2.026 billion of reals.

The CEPEA/ESALQ Index for arabica type 6, delivered in São Paulo (capital) closed at 227.77 reals or 114.92 dollars per bag of 60 kilos on Tuesday, May 15th, up 0.4 percent in Real and 3.1 percent in dollar over April 30th. For robusta type 6, in the origin Espírito Santo state, the Index averaged 189.22 reals or 95.47 dollars per bag, up 2 percent in Real and 4.8 percent in dollar in the same period.

Traditionally, from May on, international coffee players focus on the winter season in the Brazilian fields. In this period, the possibility of frosts should damage the production, boosting prices in the international market. According to forecasts, however, the chances to frosts occurrence are low during the trimester (May/July). This way, the dry and not too cold weather could be good for harvest activities in the 2007/08 crop.

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