AGL 38.09 Decreased By ▼ -0.07 (-0.18%)
AIRLINK 136.34 Increased By ▲ 2.15 (1.6%)
BOP 9.20 Increased By ▲ 0.35 (3.95%)
CNERGY 4.72 Increased By ▲ 0.03 (0.64%)
DCL 8.85 Increased By ▲ 0.18 (2.08%)
DFML 38.34 Decreased By ▼ -1.44 (-3.62%)
DGKC 85.45 Increased By ▲ 0.30 (0.35%)
FCCL 35.15 Increased By ▲ 0.25 (0.72%)
FFBL 76.21 Increased By ▲ 0.61 (0.81%)
FFL 12.66 Decreased By ▼ -0.08 (-0.63%)
HUBC 108.70 Decreased By ▼ -0.75 (-0.69%)
HUMNL 14.73 Increased By ▲ 0.63 (4.47%)
KEL 5.58 Increased By ▲ 0.18 (3.33%)
KOSM 7.96 Increased By ▲ 0.21 (2.71%)
MLCF 40.78 Decreased By ▼ -0.59 (-1.43%)
NBP 70.94 Increased By ▲ 1.24 (1.78%)
OGDC 195.25 Increased By ▲ 1.63 (0.84%)
PAEL 26.96 Increased By ▲ 0.75 (2.86%)
PIBTL 7.46 Increased By ▲ 0.04 (0.54%)
PPL 168.02 Increased By ▲ 4.17 (2.55%)
PRL 26.19 Decreased By ▼ -0.17 (-0.64%)
PTC 20.34 Increased By ▲ 0.87 (4.47%)
SEARL 92.75 Increased By ▲ 8.35 (9.89%)
TELE 7.84 Decreased By ▼ -0.15 (-1.88%)
TOMCL 35.49 Increased By ▲ 1.44 (4.23%)
TPLP 8.91 Increased By ▲ 0.19 (2.18%)
TREET 17.29 Increased By ▲ 0.11 (0.64%)
TRG 59.27 Decreased By ▼ -1.73 (-2.84%)
UNITY 31.02 Increased By ▲ 2.06 (7.11%)
WTL 1.37 No Change ▼ 0.00 (0%)
BR100 10,901 Increased By 125.5 (1.16%)
BR30 32,654 Increased By 420 (1.3%)
KSE100 101,357 Increased By 1274.6 (1.27%)
KSE30 31,488 Increased By 295 (0.95%)

Exporters and traders operating in the Brazilian coffee market are reporting fewer-than-expected deliveries of high-quality beans, blaming bad weather, a beetle infestation and farmers sitting on stocks as the harvest wraps up. The global coffee market was already expecting smaller volumes from Brazil during the off-year in its biennial coffee cycle, but output is likely to be even smaller than forecast, particularly for high quality, export-type beans. Brazil is the world's largest coffee producer and exporter.
If the more negative outlook holds through the end of the harvest this month, traditional buyers of high-quality Brazilian coffee might have to fill their orders elsewhere. Brazil's coffee exports in July hit the lowest volume for a month in over 10 years, at 1.6 million bags.
Fine cup coffee deliveries so far this year are about 30 percent below this time last year, according to a trader at one of the five biggest export houses in Brazil's top-producing state, Minas Gerais. By comparison, crop agency Conab forecast an 11 percent drop in Brazil's total coffee harvest to 45.5 million bags in 2017, including lower-quality coffee and the robusta variety.
Reuters reported last week that an infestation of the berry borer beetle known as "broca" is the worst in recent memory, hurting crops. The trader in Minas Gerais said lots arriving for export in many cases have shown damage to around 8 percent of beans. In extreme cases, damage was as high as 15 percent.
"Beans are smaller and many lots are being rejected by buyers due to borer beetle damage beyond the 5 percent limit," the trader said. "Some buyers are negotiating discounts to receive coffee with more damage."The chief coffee trader at an international commodities merchant told Reuters some exporters have been surprised at the slow pace of fine cup arrivals in the market.

Comments

Comments are closed.