Coffee New season opens with growers worried about debits and cold weather
Brazilian coffee growers started to harvest the 2006/07 crop production, forecasted at 40.62 million of bags of 60 kilos by Conab (National Company for Food Supply). In the previous season, Brazil harvested 32 million bags. Attentions are focused on the weather conditions – this year, the winter tend to be colder and drier in Brazil, influenced by a moderate La Niña. That raises chances of frosts and also can be a problem during the blooming season for 2007/08 crop production, in September.
Last days, Brazilian coffee growers decided to adhere to protests organized by farmers in several states. They want a good support program from the government that includes debts renegotiation. In March, the Brazilian government provided resources to the coffee sector, but growers affirm that, for now, the money have not reached them.
Arabica coffee from the new season has been traded at 98.00 to 100.00 dollars per bag of 60 kilos in Minas Gerais state. In Sao Paulo state, prices move from 83.00 to 92.00 dollars per bag. Remaining arabica coffee from 2005/06 crop season has been traded around 150.00 dollars per bag. Prices for robusta coffee (new season) average 66.00 dollars, according to the Cepea/Esalq Index.