Slow market during harvest time in Brazil

Brazilian coffee growers are not willing to trade, focusing on harvesting. That is because they are more capitalized with the Brazilian government financial support for harvesting and stocking of the 2006/07 crop production. A better volume of the product should be available in the domestic market from August on, when the harvest must be completed in Brazil and the international demand starts to increase with the colder weather in the North Hemisphere.

Arabica coffee prices have been settled around 98.00 dollars per bag of 60 kilos (delivery in São Paulo city), down 3.5 percent in the month.

In the short term, there are no positive fundaments for this commodity. The harvest reaches more than 50 percent of the total production in some Brazilian regions. Besides, there are no frosts forecasts for this winter.

For the robusta coffee, prices keep around 72.50 dollars per bag in Espírito Santo state, supported by the shorter global inventories. In Brazil, harvest activities for this variety are almost completed.


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