Tuesday, July 23, 2024

Arabica prices at their highest since June in Brazil

SAO PAULO, Brazil – According the latest report from CEPEA, prices for both arabica and robusta coffee continued to oscillate in the Brazilian market in mid-November; however, increases prevail. On November 16th, arabica quotations surpassed BRL 900 per 60-kilo bag, which has not been verified since June this year. For robusta, prices are close to BRL 660/bag, a level registered in August 2023.

Price increases have been boosting the pace of trades for arabica coffee, but involving small batches. As the 2023/24 season registered high production costs, producers sell the beans only when values are more attractive. Concerning robusta, the low supply has been limiting deals – it is worth noting that the 2023/24 production decreased compared to the previous.

In general, the sector was focused on the arabica production in Colombia and robusta in Vietnam, major Brazilian competitors, in mid-November. Moreover, the impacts of El Niño on Brazilian producing regions and low certified stocks at ICE Futures have also been affecting quotations.

The CEPEA/ESALQ Index for arabica coffee closed at BRL 901.44 per 60-kilo bag on November 16th, for an increase of 4.43% compared to that on October 31st. The CEPEA/ESALQ Index (Espírito Santo) for the robusta type 6, screen 13, closed at BRL 667.78 per 60-kilo bag, 3.06% up in the same comparison.

Weather – Players surveyed by Cepea are concerned with possible weather impacts of very high temperatures on coffee crops. This scenario and the forecast of absence of rainfall may affect plants and the initial development of the 2024/25 season.

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