27/09: Rain Bodes Well For Brazil's 2011 Coffee Crop

DJ MARKET TALK: Rain Bodes Well For Brazil's 2011 Coffee Crop[Dow Jones]--Rain in Brazil's main coffee growing regions is "fantastic" news for local producers, says John Wolthers, a trader at coffee exporter Comexim. Although the rain fell later than expected, it is now coming at an optimal time to trigger good flowering on coffee bushes that determines the size of next year's crop, he says. Although the next crop will be seasonally smaller, Wolthers says that the output is likely to be a good volume despite the long period of dry weather that threatened to hurt the development of the 2011 crop. "This is fantastic news for producers," Wolthers says. Moreover, Wolthers says that Brazil's coffee producers have cash in their pockets after brisk sales throughout 2010 and they don't currently face pressure to sell, he says. Brazil is the world's No.1 coffee producer. Contact us at +55-11-3544-7074; Anthony.Danby@dowjones.com