Coffee Report - October 31st

Rains in Brazil weigh heavily and the market declines, but temperatures here are worrying

The rains in the main producing regions of Brazil justify the devaluation at the beginning of the week, according to international analysis by the website Barchart. "Meteorologist Maxar Technologies said Brazil will receive moderate rainfall over the next five days. Additionally, Somar Meteorologia reported on Monday that Brazil's Minas Gerais region received 43.7 mm of rain last week, or 130% historical average", highlighted the analysis.

Here, however, the rain is beneficial, but producers remain concerned about the high temperatures in coffee areas. The rains are starting to arrive more frequently, but they still show some irregularity and maximum temperatures above 30ºC. The market still operates with many uncertainties regarding next year's production.

It is important to highlight, however, that the drop in stocks certified at ICE prevented more significant falls in prices. The volume is the lowest in a year, with 390,130 thousand bags. "Meanwhile, ICE-monitored Robusta coffee stocks stood at 3,959 lots on Monday, slightly above the record low of 3,374 lots recorded on August 31," the international analysis adds.

Source: Noticias Agrícolas