Lower supply due to crop failure limits Brazil’s coffee exports in the 2022/23 season

Published 2023년 3월 17일

Tridge summary

Brazil's coffee exports have experienced a significant decline in the 2022/23 season due to crop failures caused by adverse weather conditions, leading to domestic prices being higher than export values. As a result, the country has seen a decrease in coffee shipments both in February and overall. Despite these challenges, there is optimism for a recovery in the 2023/24 season. Currently, farmers are being cautious about selling their beans due to price volatility, and arabica coffee crops are showing promising development despite high rainfall. On the other hand, robusta coffee prices are experiencing a downturn due to international factors and a lack of interest in transactions.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

SAO PAULO, Brazil – The crop failure in Brazil in the 2022/23 season, due to weather issues (frosts and excessive rains), added to the fact that domestic prices have been higher than export values have been limiting Brazilian coffee exports in the current season. On the other hand, in the 2023/24 season, agents believe exports will recover. In February, Brazil exported 2.4 million bags of coffee, against 3.6 million in Feb/22, a decrease of 33.3%, according to data from Cecafé. In the current season (Jul/22 – Feb/23), shipments have totaled 24.6 million bags, 7.8% down from the 26.7 million exported in the same period of the 21/22 season. However, sales of the remaining beans have been low in the national spot market too. According to agents consulted by Cepea, farmers intend to sell coffee only when prices rise or when in need for cash flow. Prices have been fluctuating widely, keeping liquidity low in Brazil. On March 15th, the CEPEA/ESALQ Index for arabica coffee type 6, ...

Source: Comunicaffe