Tuesday, February 24, 2015

Bumper coffee crop in Brazil on the way.

  Coffee prices got downward pressure. Monday when forecasts for rain in Brazil added to the expectations of a bumper crop, adding to fears of surplus supplies in the market.

  Contracts for both crops have been on a months long drop in coffee because the market is coming off a more-than-four-year high set last autumn. But on Monday, the contracts came under pressure for the same reason expectations of rains in Brazil, the world’s top producer of coffee

 Light showers and normal temperatures are expected this week in Brazil’s coffee-growing regions and showers and thundershowers with cooler temperatures last week eased stress on the developing coffee crop. Brazil supplies about one-third of the world’s coffee.
Arabica coffee for the most actively traded May contract fell 3% to settle at a one-year low of $1.4825 a pound on the ICE Futures U.S. exchange.

 The weather conditions in Brazil are as good as it gets right now. Laying aside the fears that last years drought would damage coffee trees for years to come have not come true.