The 07/08 crop should be even lower
According to some coffee agents researched by Cepea, the Brazilian 2007/08 crop production should total less than the 32.065 million bags forecast by the National Company for Food Supply (Conab) in April. They consider that the coffee volume available in cooperatives is too low in this period of the season. The estimative is that 50 percent of the current crop was already harvested. The next Conab report should be published in August.
Even with the expectative of lower Brazilian production, the international market moved down during most part of the first fortnight of July. The decreasing futures reduced trades in the domestic market. The CEPEA/ESALQ Index for robusta type 6, in the origin Espírito Santo state averaged 199.25 reals or 106.55 dollars per bag of 60 kilos last Monday, decreasing 2.28 percent in Real and upping 0.85 percent in dollar over June 29th. For arabica type 6, delivered in São Paulo (capital), the Index closed at 238.01 reals or 127.28 dollars per bag of 60 kilos, down 1.18 percent in Real and increase 2 percent in dollar in the same period.
