After 30 months of heavy rain, El Niño could be positive for the recovery of Arabica production in Colombia

Published Mar 17, 2023

Tridge summary

The article discusses the impact of climate conditions on coffee supply and prices. With the end of La Niña, there are concerns about potential El Niño in the later half of the year, causing volatility in the New York Stock Exchange. Colombia's coffee producers are hoping for improved climatic conditions after three years of heavy rains, as they seek to recover from last year's production losses due to excessive rain. The National Federation of Coffee Growers is focused on normalizing production and productivity. Despite price fluctuations, leaders believe that current levels are favorable for producers, but stress the need for improved productivity. They also anticipate pressure on prices if Brazil's coffee production recovers.

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Original content

Despite the return of rains in Brazil, the uncertainty regarding the global supply of coffee still brings a lot of volatility to the New York Stock Exchange (ICE Future US). With the end of La Niña, attention is now turning to the possibility of an El Niño in the second half. According to the National Federation of Coffee Growers (FNC), in Colombia, producers are waiting for the confirmation of the climatic phenomenon, but at first, the change in the rainfall pattern can be positive for the country after three years of constant rains punishing the coffee plantations. "The periods of climate variability, with a tendency towards El Niño, are positive, as there is a greater supply of energy for crops. This is the El Niño scenario with intensity from weak to strong, but in very extreme cases the situation can become more complex with many with a very pronounced water deficit," the FNC told Notícias Agrícolas. Due to excessive rain, last year the sector called on producers to renew the ...

Source: NoticiasAgricolas