Frost May Cut Brazil Coffee Crop by 1 Million Bags, Archer Says
A frost that reached some coffee- growing regions in top producer Brazil last week may cut output by almost 1 million bags next season, according to Archer Consulting.
Temperatures fell below 2 degrees Celsius (35.6 degrees Fahrenheit) in some growing areas in southern Minas Gerais state, Sao Paulo and northern Parana, with possible frost formation, Marco Antonio dos Santos, an agronomist at Somar Meteorologia, said by phone on Aug 5.
“Some market participants are currently calculating a loss slightly smaller than 1 million bags for next season,” Rodrigo Costa, a contributor to Sao Paulo-based Archer, said in a weekly report e-mailed today. There was still no consensus on how much production would be lost, he said.
Lower temperatures caused “some damage” to coffee crops, with higher intensity in the growing region of Pocos de Caldas in southern Minas Gerais, Santos-based broker Escritorio Carvalhaes wrote in a report dated Aug. 5. Minas Gerais is Brazil’s largest arabica coffee-producing state.
The lack of agreement on losses from next year’s crop may support prices along with depleted stockpiles and tight supplies, Costa said.
To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.
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