Sept 9 (Reuters) – Coffee farmers in Brazil, the world’s largest producer and exporter, sold 60% of this year’s crop by Sept. 6, a much quicker selling pace than the historical average for the period of 48%, consultancy Safras & Mercado said on Thursday.
The consultancy said in a report that farmers sold around 34 million bags of coffee from an expected production of 56.5 million bags this year.
Safras coffee analyst Gil Barabach said good international prices have helped boost selling pace this year. But he added that activity has slowed down as of late as farmers are aware of possible production problems next year due to drier-than-normal weather and the frosts that hit fields in July.
According to the report, arabica coffee sales reached 58% compared to the historical average of 46% for this time of the year.
Robusta coffee sales are more advanced, with 63% of this year’s production already sold versus a five-year average of 54%.
Barabach said there is strong domestic demand for robusta in Brazil currently, as roasters tend to increase blending of the variety to reduce overall production costs since arabica prices have increased substantially. KCc2
Brazil is the world’s second-largest consumer behind the United States.
(Reporting by Marcelo Teixeira; Editing by Mark Porter)
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