Nov. 18 (Bloomberg) -- Coffee exports from Brazil, the world’s largest producer of the commodity, are likely to be about 3 million bags of 60 kilograms (132 pounds) in November, according to Rio de Janeiro-based broker Flavour Coffee.
Brazil shipped 3.18 million bags in November last year, according to data from the nation’s Coffee Exporters’ Council, known as Cecafe. Exports in October were 3.09 million bags, down from 3.49 million bags a year earlier, data from Cecafe show.
“The pace of November shipments so far is similar to October shipments,” Flavour Coffee said in a weekly report e- mailed yesterday. “This indicates that November shipments should stay around 3 million bags.”
Brazilian coffee, which usually trades below the price in New York, continued to command a premium to the ICE Futures U.S. exchange over the past week, according to data from the broker.
Fine cup beans were selling at a premium of 5 cents a pound over ICE and good cup beans, which are of lower quality than fine cups, were selling at a discount of 10 cents a pound, unchanged from the previous week, it said.
“Differentials remain tight for all qualities, particularly for fine qualities that are all with premiums over ICE,” according to the report.
Some roasters bought fine cup levels for the first half of 2012 this week, Thiago Cazarini, a coffee broker at Varginha, Brazil-based Cazarini Trading Company, wrote in a weekly report e-mailed today.
Arabica coffee for March delivery rose 0.2 percent to $2.366 a pound by 9:45 a.m. London time on ICE Futures U.S. in New York.
--Editors: Sharon Lindores, Nicholas Larkin
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.