Optimism with Brazil’s 2020 season
Another variable that affects prices and must set the tone of the market throughout this first half of this year is Brazil’s 2020 season. The rains hard hitting Minas Gerais have caused death and destruction in cities. Although they have damaged some warehouses, they did not affect coffee crops. A good graining is still forecast, which reinforces the optimism about production.
Comexim projects Brazil’s 2020 crop at 67.7 million bags (48.2 million of arabica and 19.5 million of conillon). Albeit lower, the number is close to the production potential of 70 million bags and above Conab’s official projection (57.2 to 62.0 million bags), which confirms the idea of a new production record. This also contributes to a negative trend in the international price curve.
