Source:Best Coffee > News Author:qjroot Published:2021-11-07 15:13:40
Brazilian coffee production expected to rebound after above-average rainfall
According to a Bloomberg report on November 5, Ecom Trading, one of the world’s largest coffee traders, said that drought conditions have eased following rainfall, and that Brazil has seen above-average precipitation since September, which may lead to a rebound in Brazilian coffee production for the 2022/2023 crop year.
Increased production may replenish depleted inventories and curb price increases. This year, Arabica coffee futures prices on the New York market surged 62% due to tight supply in South America, coupled with soaring freight rates and a shortage of containers. Many companies that use Brazilian coffee beans have therefore raised their cost budgets.
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Estêvão also said that Brazil is facing some difficulties in handling logistics and transportation. In the past few months, the delivery of about 6 million bags of coffee intended for export has been hindered as a result. This week, a truck drivers' strike delayed shipments to ports.
Truck drivers strike over soaring diesel prices
Brazilian media outlet The Brazilian Report reported on October 28 that Brazil’s Minister of Infrastructure held a meeting with the leaders of truck drivers’ unions that day to prevent a nationwide strike scheduled for November 1.
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