The Brazilian Robusta coffee prospects was seen to have significant improvement that was brought up by the much needed rains. This was, however unlikely for Arabica production, that was seen pressured by the hangover from last year’s bumper harvest.
The Brazilian crop bureau, Conab, estimated that the coffee output this year to settle at 45.56 million bags, which has little change when compared to its initial estimate in January which was at the middle of the forecast range.
In comparison, Arabica production in Brazil which is the world’s top producers of coffee was pegged to produce 35.43 million bags which is a fall back if 18.3% compared to last years produce and is also close to the low limit range of 35.01 to 37.88 million bags that Confab guided to four months ago.
The bureau noted that the improved expectations for conilon output showed greater optimism for a recovery in output in Espirito Santo, the biggest Robusta-growing state, from two years of drought. The Espirito Santo harvest was foreseen to produce up to 5.89 million bags, which was over the estimated harvest of 4.61 to 5.30 million bags.
In New York, Arabica coffee futures were washed down and slid down by 2.1% to 131.65 cents per pound for the July delivery in the late morning deals while in London the Robusta coffee futures were up by 0.6% and was traded at $1,985 per ton.