Coffee Report - October 2nd

Without reflecting Brazil's insecurities, coffee has a week of pressure in NY

According to an analysis by the international website Barchart, the forecast of rain in coffee areas justifies the pressure on prices this week, in addition to the exchange rate that for some sessions favored the downward scenario. "Rain forecasts for this week and next in coffeeproducing areas in Brazil are weighing on Arabica coffee

prices, " highlighted the publication.

In Brazil, however, the concern is with the impact of climate adversities that continue to affect coffee areas. The heat wave, which brought temperatures above 35ºC in the main areas, could harm the flowering - which even opened earlier this year. There is a consensus in the sector that the next harvest will be uncertain, but leaders say that the "super harvest" that the market expects should not come in the next cycle.

Concerned about the impacts of the climate, the producer continues to participate little in the negotiations and the pace of negotiations is still slow when compared to recent years. As winter approaches in the Northern Hemisphere, there is an expectation that demand will heat up in the coming weeks.

Source: Notícias Agrícolas