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terça-feira, 14 de outubro de 2014

Arabica-Coffee Ends at Highest Since January 2012; Cocoa Rebounds

  NEW YORK  -  Arabica-coffee futures settled at a more than two-and-a-half-year-high Tuesday as
continued dry weather fueled concerns over top producer Brazil's next crop.
  Arabica for December on ICE Futures U.S. gained 1.7% to end at $2.2190 a pound, the highest
settlement for the most actively-traded contract since Jan. 20, 2012.
  A severe drought earlier this year crimped output this season in Brazil, the world's top arabica
supplier, according to government estimates. But a lack of rainfall in recent weeks has sparked
worries over whether already weakened trees will produce even less coffee next year.
  Most of the month has been dry for Brazil's main coffee-growing region and rains aren't expected
to hit until next week, according to Sao Paulo-based forecaster Somar Meteorologia.
  The global 2014-15 coffee season, which began Oct. 1, "will likely result in a global deficit next
year," due to lower production, the International Coffee Organization said in a report this week.
  "If it doesn't rain until the end of the month it's going to be a problem," said Rodrigo Costa, an
analyst and a director at New York brokerage Newedge.
  Cocoa for December rose 1.4% to end at $3,102 a ton, despite a sign of lower demand from top
chocolate consumer Europe.
  Europe's third-quarter cocoa grindings fell 1.1% on the year to 327,866 metric tons, figures from
the Brussels-based European Cocoa Association showed Tuesday. The figures, which measure the weight
of cocoa beans processed, are regarded as a proxy for chocolate demand.
  But concerns that Ebola will spread throughout West Africa, which supplies more than two-thirds of
the world's cocoa beans, and hurt the harvest and transport of the raw chocolate ingredient,
encouraged buying, brokers said.
  The World Health Organization said Tuesday that as many as 10,000 new cases a week could be
reported by early December.
  "That created some knee-jerk buying," said Jack Scoville, a vice president at Chicago brokerage
Price Futures Group. "If it does get worse, the market could be effected. Maybe you'll have to have
less Easter chocolate."
Orange-juice concentrate for November ended 0.8% at $1.3425 a pound.
  Raw sugar for March gained 0.8% to settle at 16.81 cents a pound, while cotton for December fell
1.3% to 64.16 cents a pound.

Coffee Rust Effects on Latin America Ease -- Market Talk

  12:51 EDT - Coffee rust, a fungal disease known locally as roya, drove down production in Central
America, the Dominican Republic and Peru by 18% in the 2012-13 season, the International Coffee
Organization says, but by only 2% in the season which ended last month. "The damage from coffee leaf
rust is starting to plateau," says the ICO. But even if these growers recover this year, lower
Brazilian production due to a drought could spell trouble down the road. While supply-demand was
relatively balanced in 2013-14, lower production "will likely result in a global deficit next year."
ICE Dec arabica-coffee futures up 0.9% at $2.1990/lb.

World Weather - Coffee - 14/10/2014

By Andy Karst and Drew Lerner
Kansas City, October 14 (World Weather, Inc.) – No change in the hot, dry, weather outlook has occurred for Brazil through the weekend and any showers that evolve early next week will be too brief and light to allow any flowering or change in soil moisture. Scattered showers and thunderstorms will slowly develop and increase in the second half of next week and into the following weekend, but it remains unclear how significant the rain will be. Most likely it will be erratic offering greater rainfall to some areas than others.
The effects of Hurricane Gonzalo stayed mostly offshore from Puerto Rico as it moved to the northeast of the island overnight and serious damage to coffee did not appear likely.
BRAZIL
No measurable rainfall occurred in coffee areas Monday or early today. High temperatures were in the 30s Celsius across most coffee areas with a few readings in the upper 20s near the coast and in central Minas Gerais. No temperature in coffee areas was warmer than 38 and that occurred in northern and far northeastern Sao Paulo. Lows this morning were in the upper teens and lower 20s most often with a low of 26 in northern Sao Paulo and lows of 13 near northern Sul de Minas and interior southeastern Bahia. Hot temperatures will prevail over the coming week while rainfall is minimal. Daily highs will range in the 30s to near 40 degrees Celsius most often with one or two locations getting to 40 before the week is out. Most of the hottest conditions will not be in the heart of key coffee areas, but may impact portions of northern Sao Paulo and both western and northern Minas Gerais to possibly central Bahia. A few upper 20s will continue near the Atlantic Coast.
Low temperatures at night will be mostly in the teens and lower 20s, but a few readings of 11 to 12 may still occur tonight in the traditionally coolest locations.
The heat and dryness will more severely stress coffee trees already suffering from limited soil moisture. Recently flowered crops in the south will likely lose their blossoms without experiencing successful pollination and that will reduce the crop a little more.
Rainfall is possible early next week, but only as isolated to scattered showers and thunderstorms. Daily rain totals will range from 1 to 13 millimeters Monday into Wednesday with a locally greater amount possible. The precipitation will be welcome as relief from the previous ten days to two weeks of hot, dry, conditions. However, it will not be enough to induce a general change in crop conditions.
Rain prospects will be better in the latter part of next week and into the following weekend than they will be early to mid-week next week. World Weather, Inc. anticipates very little meaningful rainfall initially and its distribution may be somewhat similar to that of two weeks ago when a few areas received significant rain while many others did not.
COLOMBIA/VENEZUELA
Rain fell throughout northern Colombia and in a large part of central Colombia Monday. Amounts varied from light to locally heavy. Isolated and light showers occurred in southern Colombia and in western Venezuela. Regular rounds of showers will occur during the next week and most areas will receive multiple rounds of rain.
PERU
Isolated and light showers brought rain to a few locations in small parts of each coffee producing region Monday. Central to southern coffee producing areas will see a continuation of isolated and light showers through the next week. A few showers will develop from time-to-time in northern coffee locations with the precipitation light most often.
PUERTO RICO/DOMINICAN REPUBLIC/CUBA
Hurricane Gonzalo passed to the northeast of Puerto Rico overnight and most of the strong wind and heavy rain stayed offshore, sparing the coffee crop from serious damage. Gonzalo was moving to the north and away from the island this morning and is no longer a threat to coffee in the Greater Antilles.
Scattered showers will occur daily through the next week across the Greater Antilles and most areas will see rain on more than one occasion.
MEXICO/CENTRAL AMERICA
Scattered showers developed in Mexico Monday with light to moderate amounts occurring most often. Showers were more numerous in Central America where most areas from Nicaragua to Panama saw light to heavy rain and large parts of Guatemala and Honduras saw light to moderate rain.
Daily shower and thunderstorm activity will occur from southern Mexico through Central America through the next week to ten days as a series of slow-moving low pressure systems traverse the region. The active pattern is abnormal for this time of year and will interrupt farming operations and coffee harvesting.
VIETNAM
The Central Highlands were mostly dry again Monday with some rain reported near the coast. Most of the organized shower activity during the next week will occur near the coast while most coffee areas see an occasional round of light showers with drying occurring most often.
EAST-CENTRAL AFRICA (Ethiopia, Uganda, Kenya and Tanzania)
Scattered showers developed from southwestern Kenya into central and northern Uganda Monday with western Ethiopia also seeing scattered shower activity. Most of the resulting rain was light. Light rain also fell on a part of southern Uganda with mostly dry conditions occurring elsewhere.
Showers and thunderstorms will occur regularly from south-central Kenya northeastern Tanzania into western Ethiopia and Uganda’s crop regions through the next week to ten days. The precipitation will be light to moderate and locally heavy. The Pare region of Tanzania will see dry weather most often with some light showers occurring late this week into this weekend.
IVORY COAST/GHANA/NIGERIA/CAMEROON
Scattered showers and thunderstorms occurred across the region Monday. Amounts varied from light to locally heavy. Daily rounds of scattered showers and thunderstorms will continue through the next week and most areas will receive multiple rounds of rain.
INDIA
Light rain was scattered across southern India’s coffee producing region Monday. Rain will fall regularly through the next week which will help supplement irrigation and continue favorable conditions for coffee development.
INDONESIA
Rain increased in central and western Java Monday where amounts varied from 1 to 14 millimeters. A part of central Sumatra received 10 millimeters of rain with 1 to 2 millimeters reported in a couple of northern locations.
Regular rounds of showers and thunderstorms will occur during the next week in most of Sumatra with some eastern locations on southern parts of the island seeing little significant rain. Light showers will occur regularly in parts of Java while northern areas driest. Central Sulawesi will see a few light showers occasionally with little rain expected in Timor.
Arabica Coffee Ticks Higher; Orange Juice Rebounds

  NEW YORK - Arabica-coffee futures ticked higher Tuesday as erratic rainfall in Brazil's growing
areas continued to fuel concerns over the size of the next harvest after dry weather crimped this
year's production.
Arabica for December on ICE Futures U.S. was up 1.3% at $2.2100 a pound.
  Arabica-coffee futures prices have doubled this year as Brazil's worst drought in decades hurt
this season's crop from the world's top grower and has weakened trees, casting doubt over next
year's harvest.
  Most of the month has been dry for Brazil's main coffee-growing region and rains aren't expected
to hit until next week, according to Sao Paulo-based forecaster Somar Meteorologia.
  "If it doesn't rain until the end of the month it's going to be a problem," said Rodrigo Costa, an
analyst and a director at New York brokerage Newedge.
Brazil is the source of around half of the world's arabica beans.
  Orange juice for November was up 1.5% at $1.3525 a pound, after settling near a more than 11-year
low in reaction to a Nielsen report published by the Florida Department of Citrus that showed U.S.
retail sales of the breakfast beverage for the 2013-14 season dropped to the lowest level in at
least 16 years. Americans bought just 525.1 million gallons of the beverage in the year that ended
Sept. 27, according to the Nielsen data. That's the lowest since 1998-99, the oldest data available.

Cocoa for December was up 0.3% at $3,068 a ton.
  Europe's third-quarter cocoa grindings fell 1.1% on the year to 327,866 metric tons, figures from
the Brussels-based European Cocoa Association showed Tuesday. The figures, which measure the weight
of cocoa beans processed, are regarded as a proxy for chocolate demand.
  "Undoubtedly, the [traders are] still worried about all the risk to the price of cocoa should
there still be supply disruptions in West Africa," said Hector Galvan, a senior broker at RJO
Futures in Chicago, referring to the Ebola outbreak.
West Africa is the source of more than two-thirds of the world's cocoa.
  Raw sugar for March was up 0.2% at 16.70 cents a pound, while cotton for December was 0.4% higher
at 65.27 cents a pound.

Brazilian Coffee Trees Deteriorate, Last Flowering Lost

Belfast (CoffeeNetwork) Persistent dry and hot weather in key Brazilian coffee regions has resulted in a notable deterioration of trees in the first half of October, say agronomists, and all indications are that the flowerings that were seen towards the end of September have been lost. Moreover, there is no rainfall in the forecasts for this week and unusually hot temperatures are expected to continue.

Extended weather models suggest that the earliest possible opportunity for rainfall is early next week, but current expectations are that volumes will be erratic, with no widespread coverage to induce what could be called the start of the true wet season, and 2015/16 flowering.

CoffeeNetwork highlights that World Weather, Inc. projects that there will be gradually improving rainfall total from next week, in the last days of October, and that the greatest volumes may not be until early November. Rainfall totals of 8-20 mm could be seen next week, but these will not be uniform in all key growing regions. Somar also points to rains after 22 October, and its graphics suggest around 25mm in key coffee areas by the end of the month, with perhaps close to 35mm in one part of Minas Gerais.

Agronomists note that the average for October is generally taken to be 130-145mm.

On top of the lack of rainfall, as highlighted by CoffeeNetwork for the last number of weeks, is the stress placed on the coffee trees by the extraordinary temperatures. This was partly explained in the last week's Amazon Moisture Flow report by CoffeeNetwork.

It is the extent of the tree stress that will determine how flowering occurs if a true wet season begins in November. There are fears that the trees are so weakened that they may not be able to sustain blossoms, instead using the moisture to merely survive. Whether uniform November rains mean a normal flowering phase will only be evident if these occur next month.

CoffeeNetwork underlines that if November brings no significant change in weather patterns, then talk will swiftly move from a "sub-40 million bags crop" in 2015/16, to a "failed coffee crop".

Andrea Thompson