SAO PAULO, Brazil – The quotations for Arabica coffee fluctuated widely in Brazil in April, which drove agents away from the national spot market. Price drops were influenced by devaluations abroad and perspectives for lower demand for coffee worldwide.
On the other hand, valuations were linked to the dollar appreciation against the Real on some days, increases in future contracts and the absence of sellers in the market in some periods along the month – many of them stayed away from the spot also because of the holidays on April 15th (Good Friday) and on April 21st (Day of Tiradentes).
According to Cepea collaborators, farmers are expected to resume selling higher volumes as the harvesting of the 2022/23 advances – activities are supposed to begin this month.
On April 29, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,267.35 (USD 256.13)/60-kilo bag, 1.9% up from that on March 31.
For robusta coffee, quotations decreased in April, despite the dollar apreciation against the Real (+3.9%) and the absence of farmers in the market in many periods along the month – besides the holidays on the 15th and the 21st, most of them are waiting for values to increase and the beans from the 2022/23 crop to arrive at the market.
On April 29, the CEPEA/ESALQ Index for the robusta type 6, screen 13, Espírito Santo, closed at BRL 791.98 (USD 160.06)/bag, 1.6% lower than that on March 31.
The harvesting of the 2022/23 robusta crop is advancing slowly in Rondônia, due to the high share of beans that are still green. Agents reported that the coffee already harvested is being allocated to the accomplishment of contracts – a higher volume of robusta is expected to arrive at the spot market this month.
In Espírito Santo, beans were sporadically hand-picked in April. As the price gap between the coffee from the current and previous seasons is narrow, some farmers are expected to sell robusta at the current price levels – despite the green beans –, before the progress of the harvesting and the consequent devaluation of this variety.
As for the crops of arabica coffee, agents reported that activities are advancing in the Matas de Minas (Zona da Mata) and that the new coffee is expected to be available in May. According to Cepea collaborators, beans were hand-picked in Garça (SP) and in southern Minas Gerais in late April, although most crops are still ripening. Thus, as the beans dry, higher volumes are expected to arrive at the market in June and July.