Harvest delays disrupt coffee exports

The coffee harvest from the 2022/23 crop advanced only 35% of the total projected until June 21, a delay compared to the average of previous years, which should impact the country’s export rhythm in the first months of shipments of the new commercial season, informed, on the 23rd, the consultancy Safras & Mercado.

According to the consultancy, the delay in harvesting is due to irregular maturation, lack of workforce, and higher production compared to last year.

At the same time, in 2021, the largest global coffee producer and exporter had already harvested around 40% of the available crop, while the five-year historical average rate was 44%.

The harvest advanced seven percentage points compared to the previous week, according to data from Safras, but not enough to reverse the situation, which has sustained prices for immediate shipments and potentially limited the flow.

“The harvest delay has already caused short-term impacts as prices have increased, especially for coffee shipments belonging to the so-called ‘export group 1,’ which produces a fine beverage. Shipments scheduled in the short-term are getting more valuable due to the harvest delay,” says Gil Barabach, consultant.

See below the record of coffee exports from Brazil from January 2021 to April 2022. The data below was extracted from the DataLiner platform.

Coffee exports from Brazil | January 2021 – April 2022 | WTMT

Source: DataLiner (click here to request a demo)

The 60 kg bag of dark roasted coffee beans from São Paulo registered a rise of 9% in the month, quoted at R$ 1,388.80, according to an indicator of the Center for Advanced Studies in Applied Economics (Cepea).

Coffee shipments from Brazil in June totaled 1.156 million bags until the 22nd versus 859,500 bags until the same date of the previous month, according to data from the Brazilian customs authority compiled by the Council of Coffee Exporters (Cecafé).

The Safras specialist also cited a lower supply of coffee from Colombia, which boosts the market in the short term, given Brazil’s harvest pace. He adds that coffee inventories certified on the New York Stock Exchange at 22-year lows are other bullish factors.

The consultant said that a less withdrawn stance by producers could improve the supply situation.

“Producers are holding the coffee back… expecting to see a rise in the short-term, which only blocks shipments at the beginning of the harvest,” he pointed out.

Source: Diário do Comércio

To read the full original article, please go to: https://diariodocomercio.com.br/agronegocio/atraso-em-colheita-impacta-exportacoes-do-cafe/

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