Rabobank reviews Brazil's coffee harvests upwards and see good margins for sugarcane

Published Jun 21, 2021

Tridge summary

Rabobank has increased its projections for Brazil's 2020/21 and 2021/22 coffee crops due to higher carryover stock, increased domestic consumption, and strong exports. The 2020/21 production is now estimated at 72 million bags, up from 67.5 million, and the 2021/22 production at 56.7 million bags. The global deficit in 2021/22 is expected to support prices, but Brazilian sugarcane production is threatened by drought. High prices, reduced offers in Thailand, and the higher value of oil are expected to offset this. Fertilizer prices have increased due to harvest uncertainties and high commodity prices, but the pricing of agricultural products has offset these increased costs for producers. Rabobank has revised its forecast for the growth of fertilizer consumption in 2021, expecting a 5% increase to 42.7 million tons.

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

Original content

SAO PAULO (Reuters) - Rabobank reported on Monday that it has revised the 2020/21 and 2021/22 coffee crops in Brazil, as a carryover stock was observed much higher than expected in a recent survey, also considering an increase in the domestic consumption and strong Brazilian exports. For the last harvest (2020/21), production in Brazil was projected at 72 million bags (53 million of which are of the Arabica type), compared to a previous projection of 67.5 million bags (49 million of Arabica). The 2021/22 harvest, which is currently being harvested, was estimated at 56.7 million bags, 36 million of which were of the Arabica type (32% smaller compared to the previous cycle), the bank said in a report. “The 2021/22 Brazilian harvest is advancing without major problems, but with an expectation of a drop in production due to the lower production biennial and low rainfall volumes,” said Rabobank. The bank also highlighted that, in terms of prices, futures contracts traded on ICE, in New ...

Source: Mixvale