Brazilian coffee growers will reap revenues considered "good," according to a research group associated with the University of Sao Paulo.
Bloomberg reports Cepea also believes the quality of the crop will gradually improve. But it also will see a progressive reduction in production amount this year. Last year's production was more than 48 million bags and this year's is expected to slip to43.5 million since trees are beginning a phase that sees them deliver lower yield, according to estimates from the agriculture ministry.
"In spite of the lower volume produced this year, the revenue might be good this season," according to a Tuesday report by Cepea analyst Margarete Boteon, who also noted producers' gains were capped by lower bean quality during the marketing season for 2010-11.
At 2 p.m. on Wednesday, coffee futures increased 1.40 percent, a 0.0365 percent gain to $2.6485 per pound.
The coffee-producing region of Brazil is seeing reduced maturation because of temperatures that are more mild. But a weather forecaster said that might lead to beans that are of higher quality.
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