Larger coffee supply from the new crop in Brazil

The arabica coffee supply from 2006/07 crop has been increasing in Brazil as well as the product quality. It is estimated that, in average, 30 percent of the harvest is already completed. This year, activities started later, due to the dry weather.

In Minas Gerais state - Brazilian's main coffee producer state -, around 25 percent of the harvest was concluded. According to Conab (National Supply Company), coffee growers from that state should harvest 20 million bags of 60 kilos. The Brazilian production is forecasted in 40.6 million of bags of 60 kilos.

In relation to robusta's crop, activities are almost finished in Espirito Santo state. Until the end of this month, all growers should conclude the harvest of 6.5 million of bags forecasted for this year, in that state.

Market players remain focused on the colder weather in Brazil. The period more likely to have frosts in the country is expected to last until August.

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