Brazil Coffee Crop Looking Smaller Than Expected

Brazil’s government says its farmers will harvest 55.74 million bags of coffee in 2022. That number is 16.8 percent higher than last year, but experts say that’s a smaller amount than most people in the world’s largest coffee producer were expecting. Reuters says the smaller-than-expected number is important because Brazil’s coffee production is the key to balancing global supplies. If the smaller numbers are realized, it could cause a deficit and sustain coffee prices that are currently around 10-year highs. Total production is going to fall far short of the 2020 record, the previous “on-year” crop, which was estimated at 63 million bags. Rabobank predicts that Brazil will harvest 63.5 million bags, while Hedge Point Global Markets is guessing 65.8 million bags. “It does confirm the general pessimism about the 2022 on-cycle crop,” says Ryan Delaney of Coffee Trading Academy. The worst drought in 90 years and several severe frost events hit Brazil’s coffee fields last year.

Related articles

Tuesday, September 27th, 2022 Video and Audio Podcast

We saw a mostly "risk-on" type day in the grain trade on Tuesday although it was a bit of a see-saw type trade. The U.S. dollar started lower allowing all commodities to move higher...

Senate Could Vote This Week on Key USDA Nominees

The Senate could vote this week on Biden nominees for key USDA posts, as it wraps up most pre-election business but for a week or so in October. Senate Ag Republicans last week complained about...

USDA Announces Action to Spur Competition, Protect Producers and Reduce Costs

The Biden administration Monday announced two new Department of Agriculture efforts to support fair and competitive meat and poultry markets. The efforts include publishing the proposed Inclusive Competition and Market Integrity Rules Under the...

Mixed Week for Fuel Prices

Ending the 14-week stretch of gas prices declining, the nation’s average gas price posted a rise of 3.2 cents from a week ago to $3.67 per gallon. The national average is down 17.5 cents...

USMCA Partners Host Environmental Committee Meeting

Officials from the United States, Mexico and Canada met last week as part of the U.S.-Mexico-Canada Agreement’s Environment Committee. The committee was established as part of the USMCA to oversee the Environment Chapter’s implementation...

Latest articles

%d bloggers like this: