MILAN – Coffee futures rebounded strongly this morning on reports from Brazil of isolated frosts affecting some highland areas in the Arabica coffee belt, in the states of Sao Paulo and Minas Gerais. As predicted in previous days, the frosts occurred in the early hours of Sunday, 11 August, as an unusually strong cold mass for this time of the year advanced from the south towards the central areas of the country.
Frost in coffee producing areas is generally more frequent in July. The major frost to hit coffee areas in Brazil in the second decade of August happened in 1978, according to data from local forecasters quoted by Reuters.
According to Brazilian media reports, the frost affected parts of Alta Mogiana (São Paulo) and Cerrado Mineiro, the second most important Arabica production area, while the main coffee region of South Minas was spared.
The authoritative website Noticias Agricolas quotes a coffee producer in Alta Mogiana, according to whom the impact will be less this time than in 2021.
But the damage will still be significant, as plantations that were just recovering from the damage caused by the frost that occurred three years ago.
The same source – citing the local federation of coffee producers – reports intense cold – with temperatures, in some cases, close to zero – in various micro-regions of the Cerrado Mineiro, including Rio Paranaíba, Tapira, Pratinha, Patrocínio, and Araxá.
According to the Brazilian weather services, new frosts could occur in the early hours of Tuesday 13 August, but these will mainly affect the southernmost areas of the country.
In the first hours of trading, coffee futures markets are recording today, Monday 12 August, strong gains of over 6% following last Friday’s declines, when New York and London were down by 5% and 2.5% respectively.
