Rains Seen Hurting Start of Coffee Harvest
Comment of the Day

April 18 2023

Commentary by Eoin Treacy

Rains Seen Hurting Start of Coffee Harvest

This article from Bloomberg may be of interest. Here is a section: 

Heavy rains are expected in both arabica and robusta producing areas this week, Climatempo meteorologist Nadiara Pereira says in a Tuesday report.

Increased rainfall and lower temperatures over robusta areas in Espirito Santo and southern Bahia may delay the final maturation phase of crops.

Heavy rains are expected for arabica areas in Sao Paulo and Triangulo Mineiro through Wednesday

Temperatures will fall in arabica region of southern Minas Gerais by the end of the week, though the risk of frost is low.

Rains could knock fruits off trees and in extreme cases cause them to ferment on the ground, HedgePoint analyst Natália Gandolphi says in report.

That would reduce uniformity of the beans and decrease quality of the crop for both varieties.

Eoin Treacy's view

Brazil’s weather has been more volatile than usual over the last few years. With an El Nino on the brink of being confirmed there is a strong likelihood that drought is likely to be a more pressing fear later this year than excess moisture. 

Arabica coffee continues to extend its rebound and hit a new recovery high last week.
Robusta coffee is on the cusp of breaking out to new 12-year highs for the reformulated contract.
White Sugar has completed a decade-long base formation and continues to extend the breakout.
The Invesco DB Agriculture Fund continues to extend its breakout as it pulls away from the 200-day MA. 

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