Coffee ETN Burns Up as Heatwave Threatens Brazilian Harvest | Page 2 of 2 | ETF Trends

While abundant rainfall in the second half of last year helped bolster optimism for the crop, coffee growing regions in Espirito Santo only received 5 millimeters, or 0.2 inches, in January, compared to the 150-milimeter average for the month, according to Somar Meteorologia.

“In Bahia, crop conditions are terrible as they don’t have irrigation to ease plant stress,” Cooabriel’s Calegari added.

Before the sudden heat, coffee prices have been in free fall on expectations of another bumper crop after the record rainfall as crops rebound from a sever drought in 2016.

“Some farmers are forecasting losses of 10 to 15 percent,” Calegari said. “We will produce less, for sure, while we can’t estimate anything so far.”

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