Brazilian coffee cooperatives said in an unusual joint statement on Monday that weather conditions have been negative to coffee trees in recent months and will lead to a lower-than-expected harvest next year.
In the statement, signed by 19 coffee farmers' organizations including heavyweights Cooxupé and Minasul, the co-ops said expectations from market players of a record crop in 2020, when Brazil returns to the on-year in its biennial production cycle, are not supported by conditions seen in coffee fields.
"Excessive dryness in January and long periods of thermal amplitude in the fields caused trees to drop leaves, then the frosts in several areas reduced yield potential," the statement said, the first such joint declaration by the co-ops in memory.
Comments from organizations representing farmers are normally viewed with skepticism by market participants. Coffee farmers are going through a particularly difficult period, with prices close to the lowest levels in a decade.
In the statement, the co-ops said the weather conditions will lead to production that will be smaller than the record near 62 million bags seen in 2018.
Most traders were expecting a new record in 2020, saying areas that have been recently planted with new coffee trees in Brazil will come to production next year, potentially taking output above the record volume seen in 2018.