Newyork Coffee futures closed higher on better rain forecast in Brazil

New York coffee futures closed higher before the CONAB estimates today.Markets remain in up trends for now.

  • Some forecasts for some rain to develop in Brazil over the next couple of weeks was a reason to see increased selling yesterday.
  • The weather in Brazil and the condition of the trees is an important market factor as La Nina is coming and Coffee areas are already dry.[irp]
  • Early flowering has been reported in Brazil due to early rains, but it has turned dry again.
  • Some producers are worried that the rains created premature flowering and that these flower will fall and hurt overall production potential.
  • There are some reports that trees are defoliating and that would mean less production overall. This is usually a dry time, and most producers say they are not real concerned. But, the market has started to take notice.[irp]
  • Production for the next crop is starting to be offered in Central America as the harvest has started in the region.

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