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Brazil Arabica coffee crop to end in September’s 2nd half


By Isis Almeida
Bloomberg News

August 29, 2012

The arabica coffee harvest in Brazil, the world’s biggest producer, will end in the second half of September as dry weather favors pickings, according to Cepea, a University of Sao Paulo research group.

Brazil is harvesting its 2012-13 crop and production will be a record 50.4 million bags of 60 kilograms (132 pounds), the government estimates. While the robusta crop has been completed, rains in June delayed pickings of the arabica variety. Coffee- growing areas will get mostly dry weather in the first days of September, Sao Paulo-based weather forecaster Somar Meteorologia said in a report e-mailed yesterday.

“The harvesting of the 2012-13 arabica crop is advancing smoothly in main producing regions in Brazil,” Margarete Boteon, an analyst at Cepea, said yesterday. “The dry weather since mid-July has been favoring field activities.”

About 80 percent of the crop has already been picked in Cerrado Mineiro, an area of Minas Gerais, the biggest arabica- producing state, according to Cepea. In the Mogiana region in the state of Sao Paulo and the southern part of Minas Gerais, gathering is 70 percent to 80 percent done, Cepea said, citing its own survey of growers. The quality of beans may be reduced because of the rains, according to the report.

“Players say that lower quality may be registered in a higher volume,” she wrote. “This scenario creates expectations that high-quality beans might be more valued during the season.”

Fine-Cup Beans

Fine-cup arabica beans were trading at a discount of 8 cents a pound to the price of the December contract on ICE Futures U.S. in New York on Aug. 23, compared with 10 cents a week earlier, according to Flavour Coffee. Good-cup quality beans were at a discount of 16 cents a pound on the same day, compared with 15 cents a week earlier, data from the Rio de Janeiro-based broker showed. Fine-cup beans are usually more expensive because of their taste profile.

Arabica coffee is grown mainly in Latin America and is favored for specialty drinks such as those made byStarbucks Corp. (SBUX) Robusta beans are harvested mainly in Asia and parts of Africa and are used in instant coffee and espresso.

Robusta coffee for November delivery slid 0.2 percent to $2,067 a metric ton by 10:02 a.m. on NYSE Liffe in London. Arabica coffee for December delivery was down 0.3 percent to $1.6745 a pound on ICE in New York.
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To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.

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