Rabobank sees growing coffee crop in Brazil, more sugarcane crushing
SAO PAULO, Nov 9 (Reuters) – Brazilian coffee output will grow at least 8% next year to reach 68.5 million 60-kg bags, as the agricultural powerhouse sees a recovery in its plantations after a smaller-than-expected crop this year, according to a Rabobank forecast issued on Wednesday.
Rabobank analyst Guilherme Morya told journalists in a webcast that the optimistic forecast is the result of healthy rainfall in Brazil’s key coffee-producing regions.
Following lower-than-anticipated arabica yields this year due to unfavorable weather, Morya anticipates a rise in production of premium arabica beans, which account for the vast majority of the country’s coffee harvest.
Additionally, he mentioned that drier conditions in December and January could affect the forecast.
Brazil’s coffee farmers are anticipated to produce 63.2 million bags of coffee this year, including 40,1 million bags of arabica and 23.1 million bags of robusta, the latter of which is primarily used to make instant coffee blends.
Next year, coffee exports are anticipated to reach 42-43 million bags, up from 40 million bags this year, while domestic consumption is anticipated to increase by approximately 500,000 bags, or 2%.
Read more • reuters.com
Source: Coffee Talk