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Coffee roasters resume purchasing in the Brazilian market, says Cepea

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SAO PAULO, Brazil  – After a period when trades were halted, coffee roasters resumed purchasing coffee in the Brazilian market, mainly Robusta beans and mid-quality Arabica, in the first fortnight of May.

The purchased volume, however, was limited, once the availability of these types of coffee was reduced in that period and some roasters still had the product stocked. Firmer demand added to lower supply, in turn, led to slight price rises of both varieties.

Roasters showed interest in Arabica type 7 (rio beverage) remaining from the 2016/17 crop, due to the more attractive prices against Robusta, also because Robusta supply was still limited in the Brazilian market in the first half of the month.

This month (until May 15), the price gap between Arabica type 6 (hard cup or better) and 7 (rio beverage) has been 31.46 reais per 60-kilo bag; in the same period last year, this price gap was 94.54 reais per bag.

Between April 28 and May 15, quotes of the Arabica type 7 coffee (rio beverage) decreased 16.2%, at 420.47 BRL per 60-kilo bag on May 15.

The CEPEA/ESALQ Index of Arabica type 6, hard cup or better (delivered in São Paulo city), decreased 1.25% in the same period, closing at 451.94 BRL (145.41 USD) per 60-kilo bag on May 15.

Trades of the higher-quality Arabica were occasional and limited for days of higher international price rises.

Regarding Robusta, the CEPEA/ESALQ Index of Robusta type 6, screen 13, Espírito Santo State, increased 4.15% between May 28 and May 15, at 407.34 BRL (131.06 USD) per 60-kilo bag on May 15.

In the coming weeks, agents expect quotes to lose strength with the entry of larger volumes of Arabica and Robusta from the 2017/18 crop.

Field

Rains in early May in many Arabica producing regions favored the final development of the new 2017/18 Brazilian coffee crop.

For Robusta, the volume of rains was distinct in Espírito Santo and Rondônia.

According to Cepea collaborators, the weather did not hamper the harvesting in either region.