Café: Brazil and Vietnam harvest alleviates supply squeeze but should not bring down price

The market is watching with expectation the Brazilian coffee crop, the largest in the world, in 2026, as it could ease the global supply tightness of the product. At least in the last three years, Brazilian production has fallen short of expectations, battered by frost and drought. At the moment, the climate in the producing regions of the country is almost normal, except for a period of low rainfall between September and mid-October. "Good amounts of rain have been recorded in many producing areas, bringing optimism to coffee growers, as this tends to favor the productive potential of the new season," said researchers from the Center for Advanced Studies in Applied Economics (Cepea), from Esalq/USP. Until January, the rains will be fundamental for the "setting" and growth of the coffee beans, future coffee grains. Subsequently, until April, the month preceding the harvest, the regularity of the rains will be essential for the expansion and filling of the beans. "That is, there is ...