Category Archives: Coffee

Market speculates on La Niña in South America

The market already speculates with a possible lost of the strength of the El Niño phenomenon at the first semester of 2016 and, therefore, the coming of La Niña. The forecast is based on data from the Bureau of Meteorology of Australia and the meteorology services of Japan that puts the peak of El Niño during the first semester of next year. An anticipation of La Niña would result in drier weather in both South America and North America. The market reacted with rallies on the prices of palm oil, sugar and dairy products last week. Some consultancies asked by AgroSouth News have put greater risk in the future for the prices of corn, soybeans, wheat, cotton, and coffee.

Brazilian truckers set new strike for November

A group of truckers in Brazil decided to hold a new strike starting next November 9. The strike was declared independent from official, as it happened during the February and March turmoil. According to Ivar Schmidt, one of the leaders of strike, the Brazilian government did not attend any of the demands claimed at the beginning of the year and also fined truckers who stroke. The first strike was marked by blockades on roads in grain producing states like Rio Grande do Sul, Paraná, Santa Catarina, and Mato Grosso.

Brazil: Production costs increase 1.25% in July

According to a study released by the Federation of Agriculture and Livestock of Rio Grande do Sul, the Inflation of Production Cost in Brazil jumped 1.25 percent in July in the comparison with the previous month. The top influence on that increase was the price of fertilizers and agrochemicals. Throughout the year, costs for rural producers jumped 4.60 percent.

On the other hand, prices paid to Brazilian producers on average jumped 4.65 percent from June to July. During 2015, the value paid to farmers readjusted 3.26 percent. Antônio da Luz, an economist at the federation, forecasts that during the whole year, prices will surge in two digits. “Our costs will increase a lot more than those for final consumers,” analyzed Luz.

Coffee exports in nine Latin American countries drop

Exports of Arabica Coffee dropped 2.21 percent in the first two months of harvest in nine Latin American countries says the National Coffee Association of Guatemala. Colombia, Mexico, El Salvador, Guatemala, Nicaragua, Honduras, Costa Rica, Peru, and Dominica Republic exported 3.8 billion bags (60kg) between October and November. The only countries that have had growth were Colombia, Peru, and the Dominica Republic. In Colombia, exports jumped 47.5 percent. In Nicaragua, the drop was an incredible 79.5 percent. One of the main reason for the losses is a widespread rust in Central American crops.

Frost in South America will generate more demand for North American wheat

By Luís Vieira

The frost in the south of Brazil has been less intense than expected, according to some meteorological services. The coffee crops in Paraná  have escaped from severe damages, tell union workers from the region. On wheat and cane crops in Paraná and São Paulo, the frost also had lower volumes than forecast. However, a detailed briefing from the Trigo & Farinhas bulletin reveals that a significant slice of wheat crops in the north Paraná were affected by some damage.

Some yields from the northern part of the state are reported with stems and that can result in death of the grains. The south part of Paraná, however, has escaped completely from frost damage. In Paraguay, nearly 25 percent of the crops were lost. In approximately 10 days more detailed briefing will be released in Brazil reporting the total wheat losses in Rio Grande do Sul and Paraná. The services of Rio Grande do Sul did not release any sort of report on losses of wheat so far.

Luiz Pacheco, editor of Trigo & Farinhas bulletin, thinks that the damages indeed will impact the market. It would bring more purchases from the United States. An estimated 800,000 tons, he reveals. “Domestic prices in Brazil will remain high at least for the next two months. In Rio Grande do Sul the price will be R$ 800 and R$ 900 in Paraná”, explained Pacheco.

Estimates brought to the public yesterday say that China will also contribute for higher demand in the world for wheat. The country will need at least 10 million of imports of the cereal – beating Egypt as an importer. Brazil, also one of the largest importer, currently need seven million tons. “Producers are still cautious with the sales, but they realize the Chinese interest and they are awaiting to see how the crop advances”, has told Reuters Tom Puddy, trader of the Australian group CBH.

Brazil to have wheat crops damaged by frost; South gets snow in some areas

Snow in São Joaquim, Santa Catarina. Photo: São Joaquim Online

Snow in São Joaquim, Santa Catarina. Photo: São Joaquim Online

By Luís Vieira

Last night, it has snowed in the highest areas of Rio Grande do Sul and Santa Catarina in southern Brazil. The areas, which are 5,000 feet above the sea, are mostly big producers of grapes, where temperatures reached 23 degrees Fahrenheit. Meteorologists forecast that wheat areas in northwest of Rio Grande do Sul and Paraná can be damage by frost tonight.

Currently, the wheat is at the tasseling phase in these areas of Paraná, but in Rio Grande do Sul it is not the crops are not at risk because the crops are at the initial phase, agronomists say. Nearly 40 percent of wheat crops in Paraná can be damaged tonight, according to the government of that state.  Rice crops are likely to get this black frost in Santa Catarina. Coffee grains are likely to be the most damaged crops in Paraná.

Luiz Pacheco, editor of Trigos & Farinhas bulletin, informs AgroSouth News that most regions of Paraná have stopped agricultural activities yesterday and today, including corn, barley, and wheat crops. Humidity has impeded agricultural works in the majority of the south and west part of the state.

Snow is not a very common phenomenon in Brazil. The last time it happened was in 2009 in the highest areas of both Rio Grande do Sul and Santa Catarina. In 2006, it snowed in low areas of Rio Grande do Sul near the border with Uruguay.


Colombian coffee production rises 28% in June

The Colombian production of coffee increased 28 percent in June compared with last year, according to Colombia’s National Federation of Coffee Growers. The country produced 913,000 bags (60 kg). Compared to May, on the other hand, production has fallen by 2.56 percent.

Considering the first semester, the Colombian coffee yields jumped 35 percent to 4.93 million bags. In 2012, Colombia had the worst coffee crop season in 2012. The country renewed 780,853 acres from 2010 to 2013. The Colombian coffee is known as one of the suppliers of Starbucks.

Colombia sets a revival of the coffee industry

After a renovation program of coffee plantations, Colombia is reviving of its major industries. The country was struggling with several pasts in the coffee fields, but now there is a recovery of production. The National Federation of Coffee Growers says that the production will be 2.24 million acres. For the third year in a roll, the production is in an area of over  2.2 million acres. However, the yields are still smaller than in 2008, when the output was 2.3 million bags in the first five months of the year.

The production of the first five months of 2013, Colombia produced 4.03 million bags. From January to May, the country exported 3.7 million bags – 2.8 million above last year.


Basf announces major investment in South America

Basf executives aim to South America as an strategic market

Basf announced last Friday that it will invest nearly 50 million euro mostly expanding its Chemical Complex in Guarantinguetá, state of São Paulo, in Brazil. The German company intends to increase local production and the capacity of development of products. In Chile, there are also new investments. Basf is set to innaugurate a new biologicals factory in the Andean country and to form a new division called Functional Crop Care.

“This initiative will strenghten local production and will continue Basf investments in South America. It reinforces our committment to accelerate the growth of the business in the region through innovation and technology”, said Markus Heldt, president of Basf’s Crop Protection Division. According to Heldt, when the expansion in the Brazil is done, Basf will export more chemicals from that factory to other countries. “We hope to balance the company’s productive capacity in the world”, concluded Heldt.

The factory to be expanded in Brazil produces the Boscalid fungicide, which is designed to combat diseases on coffee, cereals, and fruits. The forecast to finish building the factory is the end of this year. The Guaratinguetá facilities will also have a second factory, made to produce Heat, the herbice to controle weeds.