May 21 (Bloomberg) -- Rains in coffee growing areas in Brazil, the world’s largest producer of the commodity, are likely to delay harvesting by as much as 30 days, according to the country’s National Coffee Council, known as CNC.
The wetter weather will delay the picking of arabica beans especially in Sao Paulo and Minas Gerais, the country’s main growing state, CNC said in a report e-mailed May 18. Coffee areas will get more rainfall for the week starting on May 23, Marco Antonio dos Santos, an agronomist at forecaster Somar Meteorologia, said in an e-mailed report on May 16.
“The delay to pickings and the low level of carry-over stocks are keeping coffee market fundamentals positive,” Silas Brasileiro, president of the council, said in the report.
Arabica coffee traded on ICE Futures U.S. in New York climbed 2.6 percent over the past two weeks after falling for four consecutive 7-day periods. The price was up 1 percent at $1.809 a pound by 4:26 a.m. in New York, down 41 percent from a 14-year high of $3.089 a pound in May last year. Only five percent of this year’s crop had been harvested by May 16, according to Somar.
Producers should be cautious about the quality of their coffee, as rains may cause some fruit to fall from trees, CNC’s Brasileiro said in the report, highlighting increasing demand for beans of better taste profile.
Fine cup beans from the new season were trading at a discount of 9 cents a pound to the price on ICE, while good cup quality coffee was at a discount of 18 cents a pound, Santos, Brazil-based broker JR Corretora said in a report e-mailed yesterday.
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