Brazil Frost May Hurt Coffee Flowering for Next Crop, Cepea Says

A frost that reached some coffee- growing states in top producer Brazil last week may hurt flowering before next year’s crop, according to Cepea, a University of Sao Paulo research group.

Temperatures fell below 2 degrees Celsius (35.6 degrees Fahrenheit) in some growing areas in southern Minas Gerais state, Sao Paulo and northern Parana, with possible frost formation, Marco Antonio dos Santos, an agronomist at Somar Meteorologia, said by phone on Aug 5. Minas Gerais is Brazil’s largest arabica coffee-producing state.

“Frosts and cold temperatures might affect the blossoming of the next crop,” Cepea analyst Margarete Boteon said in a report dated yesterday, with frost burning having some effect on leaves. “Therefore, the plant will allocate its strength to recover leaves, which might result in lower yield,” she said.

Frost in Brazilian growing regions can damage trees bearing the following year’s crop. Arabica soared to a record $3.375 a pound in 1977, data compiled by Bloomberg shows, after damage from “black frost” in the country two years earlier.

The extent of the damage for the current season is still unknown, Boteon said, adding that the possibility of harm was hindering trading in Brazil’s domestic market. “Sellers expect higher prices due to the possibility of losses caused by frosts,” she said in the report.

Arabica for December delivery advanced 1.4 cents, or 0.6 percent, to $2.399 a pound by 9:05 a.m. London time on ICE Futures U.S. in New York. Robusta beans for September delivery rose $23, or 1.1 percent, to $2,121 a metric ton on NYSE Liffe in London.