Futures news, coffee. As predicted on March 15, 2012 by Commodity Trading Department of , coffee market is ranging sideways. Last week the zone of flat increased again and was ranging from 174.5 to 190.5. This has been caused by rally at stock and financial markets as well as drought in some regions of Brazil and Columbia.
Objective reason for this is dry weather in Brazil and Columbia during March. Some regions still lack rains. Besides, there has been typhoon in Vietnam . As an illustration, herein follows a map of Brazil that shows regions for growing coffee. The more coffee is produced in the region the darker is the colour that it is marked with:
Next week’s weather forecast is mostly favourable, but some regions of Brazil will lack rains. If to compare forecast with the map, one can see that most important regions will receive their share of rain:
• last weeks it mostly rained in central and southern regions of Brazil – Minas Gerais and Espirito Santo, making drought slightly weaker. However, remaining drought brings concern about coffee growing areas. Later this week rainfalls are expected to increase in some southern regions, but more rain will be needed for the coffee to ripe.
• this week rainfalls are expected to increase in Columbia, making drought problem weaker.
• strong tropical storm Packar may have partially damaged coffee crop in southern parts of central mountainous region in Vietnam .
• strong rainfalls are expected in Indonesia, maintaining humidity in its central region Sulawesi.
• rainfalls in East Africa are expected to improve conditions in central Ethiopia, southern Uganda, south-western Kenya, and Tanzania.
