Friday 09 December 2022

Brazil: Arabica quality improves, processing delayed by low temperatures

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SAO PAULO, Brazil – Arabica harvesting advanced in all Brazilian regions in July, favored by the drier weather, reports Cepea. However, retraction of purchasers and sellers kept the pace of trades very slow.

According to agents consulted by Cepea, low temperatures delayed the processing of beans, mainly the drying process, limiting supply in the spot market. Besides, many growers were focused on future delivery, rather than on trades in the spot market, which hampered trades as well.

In general, the quality of the beans is better, compared to that in the first batches, which were classified as rio beverage due to rains in May and June.

However, Cepea collaborators reported smaller screen in most regions, mainly in southern Minas Gerais and in regions from São Paulo State, in addition incidence of coffee berry borer.

The smaller volume harvested this season is within expectations because of the negative biennial cycle; however, agents fear that supply may reduce even more at the crop end.

In this scenario, the CEPEA/ESALQ Index of Arabica type 6, hard cup or better (delivered in São Paulo city), increased 4.16% in July, closing at 464.41 BRL (149.04 USD) per 60-kilo bag on July 31.

On July 28, the Aabica harvesting had been the most advanced in the Cerrado Mineiro region, reaching nearly 70% of the total harvested, according to Cepea collaborators.

Robusta

For Robusta, despite the end of the harvesting in Espírito Santo and Rondônia, the availability in the market was low in July. Many growers expected prices to rise more sharply to close trades; however, they were trading only when in need of cash flow. With sellers’ retraction and weakened demand, Robusta quotes oscillated slightly during the month.

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