AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 131.00 Increased By ▲ 1.47 (1.13%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.65 Increased By ▲ 0.02 (0.43%)
DCL 8.99 Increased By ▲ 0.05 (0.56%)
DFML 43.20 Increased By ▲ 1.51 (3.62%)
DGKC 83.99 Increased By ▲ 0.22 (0.26%)
FCCL 32.80 Increased By ▲ 0.03 (0.09%)
FFBL 77.40 Increased By ▲ 1.93 (2.56%)
FFL 11.50 Increased By ▲ 0.03 (0.26%)
HUBC 110.90 Increased By ▲ 0.35 (0.32%)
HUMNL 14.56 No Change ▼ 0.00 (0%)
KEL 5.47 Increased By ▲ 0.08 (1.48%)
KOSM 8.45 Increased By ▲ 0.05 (0.6%)
MLCF 39.97 Increased By ▲ 0.18 (0.45%)
NBP 60.75 Increased By ▲ 0.46 (0.76%)
OGDC 198.50 Decreased By ▼ -1.16 (-0.58%)
PAEL 26.66 Increased By ▲ 0.01 (0.04%)
PIBTL 7.85 Increased By ▲ 0.19 (2.48%)
PPL 158.50 Increased By ▲ 0.58 (0.37%)
PRL 26.45 Decreased By ▼ -0.28 (-1.05%)
PTC 18.90 Increased By ▲ 0.44 (2.38%)
SEARL 82.90 Increased By ▲ 0.46 (0.56%)
TELE 8.43 Increased By ▲ 0.12 (1.44%)
TOMCL 34.80 Increased By ▲ 0.29 (0.84%)
TPLP 9.15 Increased By ▲ 0.09 (0.99%)
TREET 17.45 Decreased By ▼ -0.02 (-0.11%)
TRG 61.90 Increased By ▲ 0.58 (0.95%)
UNITY 27.44 Increased By ▲ 0.01 (0.04%)
WTL 1.40 Increased By ▲ 0.02 (1.45%)
BR100 10,490 Increased By 83.1 (0.8%)
BR30 31,857 Increased By 144.1 (0.45%)
KSE100 98,015 Increased By 686.2 (0.71%)
KSE30 30,409 Increased By 216.1 (0.72%)

Brazil's 2018 coffee crop is expected to reach 58.04 million 60-kg bags, surpassing a previous record of 51.37 million bags in 2016, Brazil's agricultural statistics agency Conab said in a report on Thursday. Conab revised its January projection that had put production at a range between 54.44 and 58.51 million bags, putting the current estimate at the top of that range, with prospects helped by favourable weather and good crop care.
Brazil, the world's largest coffee producer and exporter, reported an output of 44.97 million bags last year. The country is going through the 'on' year in its biennial coffee production cycle, which alternates years of lower and higher outputs, a factor that was also cited by Conab. The government's agency projected arabica coffee output at 44.33 million bags versus the 41.74-44.55 million bags range it had seen in January and 34.24 million bags produced in 2017.
The production of robusta, a coffee variety more widely used to make instant coffee, was seen at 13.71 million bags versus a range between 12.69 and 13.95 million bags in January and 10.72 million bags produced last year. Conab's revision confirmed views from analysts and market participants that Brazil will indeed have a bumper crop.
Some expect numbers above 60 million bags, saying robusta recovery in Brazil after a severe drought in 2015 and 2016 is significant. Farmers in Brazil's top robusta producer Esporito Santo have invested in water supplies to guarantee better crops. "True or not the sentiment is that the conilon (robusta) crop can surprise even more on the upside, with some agents suggesting a figure as high as 18 million bags," Rodrigo Costa, a director at trader Comexim in New York said in a note to clients.
Low global prices are impacting new coffee planting, Conab said. Arabica fields under development in Brazil fell 18 percent in 2018 compared to 2017 or 55,000 hectares less. Arabica futures in New York are trading at the lowest levels since March 2016.

Copyright Reuters, 2018

Comments

Comments are closed.