Harvest is slow due to weather and low prices with Zona da Mata 20% complete and Sul de Minas a bit behind that pace. The actual samples indicate an alarming situation. The yield is down and the quality is poor.
One operator in Zona da Mata says: 420 liter to make a 60 kilo bag, normally versus so far this year 480/500 liters to make a 60 kilo bag. Moreover, 50% of the samples cups rio. This is very alarming.
Worst crop in 20 years.
The technical behavior of the Bolsa expresses this view, see following daily chart of Dec Bolsa. This spells trouble for the shorts who cannot seem to get a break when covering their physical shorts.
Bica Mineira traded r$425 yesterday. Exporters realize the new crop is smaller and of poor quality so they must pay up for good cup and fine cup coffees. Expect strong buying pressure to come.