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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