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WORLD DEVELOPMENTS
Highlights:
Brazil: The El Nino phenomenon coupled with a 5 percent decrease in international prices is expected to affect Brazilian tobacco production and trade in 1998. Brazilian total leaf output is forecast at 536,000 metric tons, down 10 percent from 1997. Much of this decline is with flue-cured tobacco which is forecast to decline nearly 11 percent to 380,000 tons. Brazil’s leaf exports are forecast to drop 6 percent to 280,500 metric tons due to lower leaf availability. Imports are expected to remain constant. Domestic leaf use, however, is expected to increase 2 percent in 1998 due to an increase in cigarette production.
Auction Reports:
Canadian Flue-Cured Auction Update: Through the 39th sale day of the 1997/98 Canadian flue-cured tobacco marketing season, the Ontario Flue-Cured Tobacco Growers Marketing Board reports that 24,888 metric tons of flue-cured tobacco have been sold. This represents an increase in sales when compared to the same period of last year's marketing season. Prices in Canadian currency so far this year are averaging $3.70 (US$2.56) per kilogram, slightly lower than last year. So far this year, sales of "A" graded leaves account for over 75 percent of purchases, up from 68 percent last year.
Canadian Flue-Cured Auction Update Sales Day 39 December 5, 1997 |
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Quantity in Metric Tons |
Average Value per Kilogram (US $ equivalent)* |
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1996/97 |
1997/98 |
1996/97 |
1997/98 |
23,021 * |
24,888 |
US$2.74 * | US$2.56 |
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Ontario Flue-Cured Tobacco Growers Marketing Board. * Through 35 Sale Days. |
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Exchange Rates:
1996/97 U.S.$ = CA$ 1.37
1997/98 U.S.$ = CA$ 1.43
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