Coffee News november 13 2015 - Brazil weather news Good prospects for coffee next 2016 crop : The Brazil weather news for the week remains conducive to good prospects for the next 2016 crop, with now regular rains being experienced for the majority of the main coffee districts and likewise, good rains being forecasted for the foreseeable future. But there is an exception in terms of the northern areas of Espirito Santo and over Bahia, where the rains so far have been modest. But with rains forecasted for both of these districts for this weekend and thereon, to eliminate any short term concerns within the market.
The well-respected Brazilian coffee analysts Safras e Mercado, have reported that approximately 63% of this new crop has already been sold by the farmers and cooperatives, as at the end of October. This they say is ahead of the more usual 57% factor for the same time of the year, but one might suggest that with farm sales including both past crop stocks and new crop coffees, it must be difficult to easily asses how much of the selling is related to the stocks and new crop coffees.
It is nevertheless evident from reports this week that despite the relatively soft nature of reference prices of the international terminal markets, that Brazils internal market selling activity was not restrained this week. But while the internal market selling to the short sold exporters is active, the reports are that new export sales have been lacklustre for the week.
The latest update from the U.S. Government Climate Prediction Centre weather forecasters has indicated that the prevailing El Nino phenomenon shall peak over the next couple of months and shall start to taper off during to start to see the Pacific ocean conditions back to neutral during the second quarter of year. But while this El Nino with historical evidence of its influence upon climate conditions for individual coffee producers in hand is of some concern, there have yet to be any strong scare stories coming to the markets. There have been forecasts from some problems for Indonesia and for the middle year Mitaca crop in Colombia, but not to a degree that is has influenced any panic market reaction.
Brazil off the field of play yesterday so to speak in terms of fundamental news and with the factor of deficit supply post the new Brazil crop foreseen to be more than easily covered on the medium term by more than adequate world stocks and the El Nino factor likewise not generating any excitement, the coffee markets remain with the negative influences of the strong dollar and the negative nature of the overall macro commodity index. This scenario is presently fuelling bearish sentiment within the markets and by nature, restraining consumer industry buying activity, which further contributes along with producer price resistance, to the soft nature of the markets.
The well-respected Brazilian coffee analysts Safras e Mercado, have reported that approximately 63% of this new crop has already been sold by the farmers and cooperatives, as at the end of October. This they say is ahead of the more usual 57% factor for the same time of the year, but one might suggest that with farm sales including both past crop stocks and new crop coffees, it must be difficult to easily asses how much of the selling is related to the stocks and new crop coffees.
It is nevertheless evident from reports this week that despite the relatively soft nature of reference prices of the international terminal markets, that Brazils internal market selling activity was not restrained this week. But while the internal market selling to the short sold exporters is active, the reports are that new export sales have been lacklustre for the week.
The latest update from the U.S. Government Climate Prediction Centre weather forecasters has indicated that the prevailing El Nino phenomenon shall peak over the next couple of months and shall start to taper off during to start to see the Pacific ocean conditions back to neutral during the second quarter of year. But while this El Nino with historical evidence of its influence upon climate conditions for individual coffee producers in hand is of some concern, there have yet to be any strong scare stories coming to the markets. There have been forecasts from some problems for Indonesia and for the middle year Mitaca crop in Colombia, but not to a degree that is has influenced any panic market reaction.
Brazil off the field of play yesterday so to speak in terms of fundamental news and with the factor of deficit supply post the new Brazil crop foreseen to be more than easily covered on the medium term by more than adequate world stocks and the El Nino factor likewise not generating any excitement, the coffee markets remain with the negative influences of the strong dollar and the negative nature of the overall macro commodity index. This scenario is presently fuelling bearish sentiment within the markets and by nature, restraining consumer industry buying activity, which further contributes along with producer price resistance, to the soft nature of the markets.
0 Response to " Brazil weather news Good prospects for coffee next 2016 crop"
Post a Comment