Light frosts reported in some Brazilian coffee areas, prices surge

By Marcelo Teixeira and Roberto Samora

SAO PAULO (Reuters) - Farmers reported light frosts in coffee-producing areas of Brazil over the weekend as an unusually strong cold mass for this time of year advances from the South to central areas in the country.

Coffee prices rose more than 6% on the ICE exchange on Monday following the news, as investors rushed to buy futures to safeguard against potential production problems linked to the frosts.

Brazilian farmers posted videos on social media of light frosts in the Cerrado Mineiro region, the second most important producing region of top Brazilian coffee grower Minas Gerais. There were no reports of frosts yet in the main coffee area of South Minas Gerais.

According to farmers' posts and information from coffee co-ops, municipalities such as Patrocinio and Tapira in the Cerrado Mineiro region showed signs of being hit by frosts.

"Yes, we had some frosts in specific places," said Expocacer, a coffee co-op at the Cerrado Mineiro region. "It is not clear yet the extension of the event, we have started an assessment among associated farmers."

Marco Antonio dos Santos, a meteorologist with Rural Clima forecasters, said frosts were light with no resemblance to the last major frost event in 2021 that destroyed hundreds of hectares of plantations.

Frosts can reduce agricultural yields in coffee crops if they are intense, as they cause leaves to fall, reducing trees' vitality. Brazil's current crop is nearly all harvested, but any major frost would hit production potential for 2025.

The last major frost to hit coffee areas in mid August happened in 1978, according to data from forecasters.

Brazil's official forecaster CPTEC sees potential for more frosts in the early hours of Aug. 13, but mostly in the three Southern states, plus Sao Paulo and Mato Grosso do Sul.

Frosts can also have a negative impact on sugarcane fields if they are strong. Sao Paulo is Brazil's largest sugarcane producing state.

(Reporting by Marcelo Teixeira in New York and Roberto Samora in Sao Paulo; Editing by Josie Kao and Jan Harvey)