SAO PAULO, Brazil — Arabica and robusta coffee prices rose in the Brazilian market in October, due to higher demand and the valuation of both varieties in the international market – in mid-October, the domestic coffee prices returned to the levels from early June 2018 (real terms – deflated by the IGP-DI from August/18).
Thus, sellers returned to the spot market and liquidity was high, mainly for arabica. Besides, the agents consulted by Cepea reported a high number of future trades involving the 2019/20 arabica crop, after purchasers’ bidding prices for delivery in September/19 reached 500 BRL per bag.
By the end of the month, however, the trading pace slowed down again in the Brazilian spot market and the volumes traded were smaller than in previous weeks.
On October 31, the CEPEA/ESALQ Index for arabica coffee type 6 (delivered in São Paulo) closed at 440.42 BRL (118.74 USD) per bag 60-kilo bag, 7% up compared to that on September 28.
For robusta, the CEPEA/ESALQ Index for the robusta type 6, screen 13, Espírito Santo State, closed at 330.67 BRL (89.15 USD) per 60-kilo bag on October 31, 4% up in the same comparison.
The weather continues favoring the 2019/20 crop (both arabica and robusta). In Espírito Santo and Rondônia, sparse rains in October helped fruitlets settlement, which are already developing in all robusta crops.
In the arabica-producing regions, good rain volumes were observed last month, and Cepea collaborators reported a satisfactory settlement of flowers and fruitlets. In northwestern Paraná, fruitlets could be observed in most crops, due to the large blossoming in both August and September.
In the remaining regions, however, blossoming occurred in August, September and October – thus, some crops already have fruitlets, while others only have flowers.