Brazil reports arabica surplus in 2013

coffee-rain-brazil-2013

The rains finally arrive in East Brazil, bringing hope to farmers and a forecast surplus to the coffee market

The surprisingly parched grounds in Eastern Brazil have been worrying many coffee farmers for a while now, as large swathes of plants, and many companies futures, looked perilously close to failing. Thankfully the rains have arrived to the Espirito Santo and Minas Gerais coffee regions in Brazil, with early forecasts suggesting the world is in for another surplus year of Brazilian arabica coffee.

Reflecting the continuing excess of coffee being produced, the New York stock exchange see’s the futures of coffee in May down to one of its lowest since 2010, at only 140.50 cents a pound.

With the price dropping steadily as farmers turn to the quick profit of arabica beans, theory should hold that the consumer will be a few pennies better off at the end of the day. However, with the coffee disaster hitting Guatamala the certainty of costs could be hard to reliably gauge for the next few seasons.

(Source Agrimoney)

 

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