Brazil's coffee crop is 41% sold, harvest goes to 86%, says consultancy

Brazilian coffee growers had sold 41% of their 2023/24 crop by the beginning of August, the consultancy Safras & Mercado reported on Friday, an index that is behind 45% of the same period last year and the historical average for the season of 46%.

Safras said in a statement that producers have been more cautious when it comes to selling this year because of economic uncertainties, leading to a "erratic" pace of sales so far this season, despite the increase in production.

The consultancy said that sales of Arabica coffee reached about 39% of the expected production, well below the average of 45%, while the robust coffee business was estimated at 46%.

"Some producers took advantage of the upward volatility in NY and the dollar to close some sale, but much of it still remained on the defensive betting on a bullish turn. Financial volatility and real interest still very high in Brazil, even after the cut in the Selic rate, should continue to weigh on the seller's decision-making," said Gil Barabach, a consultant at Safras.

Safras estimates Brazilian coffee production in 2023/24 at 66.7 million 60 kg bags.

The consultancy said that farmers had harvested 86% of the areas by August 8, an increase of 6 percentage points compared to the previous week, but still below last year's 89% at the same point.

The average of five years for the period is 90%.

Barabach said that dry weather and high temperatures favored the progress of field work last week. So far, 80% of the areas of Arabica and 96% of the areas of robust coffee have been harvested, according to Safras.

Source: Noticias Agrícolas