IN SHORT: Brazil's coffee crop up

Brazil's upcoming 2012/13 arabica coffee crop will reach 55.0 million 60-kg bags, giant German coffee trader Neumann Kaffee Gruppe (NKG) said in a report seen by Reuters on Friday. This is lower than the forecast of 55.8 million bags made by Brazilian exporter Comexim on February 3 and well over official Brazilian government forecasts of 49 million to 52.3 million bags.
Brazil is the world's top coffee producer and the market is eagerly awaiting supplies from the 2012/13 harvest which comes in a higher-output year. Brazil has an up-down cycle which causes output to rise and fall in two-year cycles.