Friday 14 June 2024
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Brazil’s domestic prices on the rise despite the 2024/25 harvest gaining pace, Cepea

The domestic market has been influenced by the international context, related especially to unfavourable weather conditions in Vietnam, world’s biggest Robusta producer. The possibility of the 2024/25 crop ending with lower supply, in turn, boosted domestic coffee prices.

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SAO PAULO, Brazil – Cepea released its usual fortnightly report last week with updates on Brazil ‘s harvest, domestic prices and export trends. After moving down significantly in early May, quotations for both arabica and robusta coffee increased from the middle of May onwards, says the report.

As for arabica, the CEPEA/ESALQ Index for the type 6, delivered in São Paulo, closed at BRL 1,286.07 per 60-kilo bag on May 31, moving up 3.06% in the accumulated of the month (from April 30 to May 31).

Concerning robusta, the CEPEA/ESALQ Index for the type 6 even closed at BRL 1,149.20 per 60-kilo bag on May 31, for an increase of 1.28% compared to April 30.

Despite the beginning of harvest activities in Brazil, which normally presses down quotations, the domestic market has been influenced by the international context, related especially to unfavorable weather conditions in Vietnam, world’s biggest robusta producer.

The possibility of the 2024/25 crop ending with lower supply, in turn, boosted domestic coffee prices.

In Brazil, the 2024/25 arabica harvest was still gaining pace in the end of May, favored by the weather. According to Cepea, activities correspond to less than 20% of the expected production.

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This season, of positive biennial cycle, is forecast at 58.8 million bags (of arabica and robusta) by Conab, 15.5% up compared to the previous crop.

Brazil ‘s coffee exports

According to data from Cecafé, Brazilian coffee shipments in the 2023/24 season (from July/23 to April/24) totaled 39.25 million bags, 28% more than in the same period last crop. This is the second best performance for a season, behind that observed in 2020/21, when Brazil exported 39.9 million bags (between July/20 and April/21).

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