hEDGEpoint Global Markets provides an overview of the 2022/2023 Brazilian coffee harvest

Brazilian Arabica-producing areas received rain three times higher than expected last week, which raises concerns both for the 2022/2023 supply in the drying phase, and for 23/24, with the possibility of premature flowering, indicates hEDGEpoint Global Markets , specializing in market intelligence, consulting, risk management and hedging solutions for agricultural and energy commodities.

“The 22/23 harvest is late, in terms of fixation and harvest. Currently, 45% of the Arabica crop has been sold, below the 52% recorded in the same period of the 20/21 and 21/22 cycles”, observes the company's Coffee analyst, Natália Gandolphi. “Similarly, the harvest rate is at 84% for Arabica, only now reaching 21/22 levels, but still below the usual pace (87%, on average),” she adds.

Consequently, the current scenario for arabica has already resulted in lower exports: shipments fell 6% in July, year-on-year, to 2,02 million bags. “Still, agents are awaiting the latest assessments of the field to identify Arabica production levels,” says the expert.