RIO DE JANEIRO, BRAZIL – Rabobank said on Monday, June 21, that it has revised upward Brazilian coffee harvests for 2020/21 and 2021/22 as it found much higher carryover stocks than expected in a recent survey, also taking into account an increase in domestic consumption and strong Brazilian exports.
Brazilian production for the final crop year (2020/21) is forecast at 72 million bags (53 million of the Arabica variety), compared with a previous forecast of 67.5 million bags (49 million of the Arabica variety).
Meanwhile, the 2021/22 crop, which is currently underway, was estimated at 56.7 million bags, of which 36 million will be of the Arabica type (32% less than the previous cycle), the bank said in a report.
“The 2021/22 Brazilian crop is proceeding without major problems, but with an expected production deficit due to lower rainfall,” Rabobank said.