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USDA PEGS BRAZILIAN CROP AT 63.4 MILLION BAGS

USDA PEGS BRAZILIAN CROP AT 63.4 MILLION BAGS



The US Department of Agriculture’s trade office in São Paulo has issued a revised estimate for Brazilian coffee production in marketing year 2018/19 (July-June) of 63.4 million bags.

The USDA said the upward revision in the figure – including a five per cent increase in Arabica production – was due to better yields than anticipated.

Its estimate of Brazilian exports in MY 2018/19 remains unchanged at 35.33 million bags, reaching near record levels despite limited container availability for shipments at ports.

Coffee growers have reportedly requested that the Brazilian government should supply additional funds to support holding additional coffee stocks in an attempt to avoid selling at current prices, given how low they are. At the time of writing the C price in New York was at 112 US cents.

Arabica production is estimated at 46.9 million bags. Robusta production in MY 2018/19 is estimated at 16.5 million bags, which is also a five percent increase compared to the previous estimate, due to better than initially anticipated yields in the states of Espírito Santo and Bahía.

The Robusta and Arabica harvests ended in August and September, respectively, in the majority of coffee growing areas. Coffee traders reported that bean and cup quality are above average, except in select producing regions in eastern Minas Gerais, western São Paulo, and northwestern Paraná.

In September 2018, CONAB released a third official coffee production estimate for MY 2018/19 that was six per cent lower, at 59.91 million bags (45.94 million bags of Arabica and 13.97 million of Robusta coffee).

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