At the moment, Brazilian coffee players are focused on the future crop (2008/09). In August month, the first blooming started to appear and it is important to analyze the weather conditions - rains help a lot the crop development from September on.
The CEPEA/ESALQ Index for arabica coffee type 6, delivered in Sao Paulo (capital) closed at 252.06 reals or 128.41 dollars per bag of 60 kilos on Aug 31st, upping 4.82 percent in Real over July 31st. For the robusta type 6, in the origin Espírito Santo state, the Index averaged 201.50 reals or 102.65 dollars per bag, increase 0.85 percent in Real during the same period.
The third forecast about the Brazilian coffee 2007/08 crop production published by the National Company for Food Supply (Conab) on Aug 24th kept almost unchanged over the previous one (on April), totaling 32.6 million bags of 60 kilos. Based on this estimation and on stocks data, the supply available in Brazil should total 41 million bags until June 2008. This volume is too low to attend the domestic and the international markets.
According to the Brazilian Coffee Industry Association (Abic), the national consumption should reach 17.4 million bags this year and exports, 28 million bags, which results in a demand of 45 million bags.