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Demand for fine coffee increases in Brazil, says Cepea in its latest update

The harvesting of the 2023/24 crop has begun in all Brazilian regions. According to Cepea collaborators, both the quality and the volumes of arabica coffee harvested so far are as expected

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SAO PAULO, Brazil – Sales of arabica coffee increased slightly in late May. According to Cepea collaborators, that scenario was linked to an increase in the demand for fine coffee in Brazil. The volume sold in the national spot market in late May was constrained by the current price levels, considered by farmers not very attractive.

It is important to mention that arabica coffee prices neared BRL 1,500 per 60-kg bag in the first semester of 2022, helping many farmers to make cash flow in that period.

Last month, the average of the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,039.88/bag, against BRL 1,220.00/bag in May/22, in real terms (deflated by the IGP-DI).

For lower quality coffee, quotations were lower than that last year too. Arabica rio was sold at BRL 920/bag in May/23, on average, against BRL 1,080.00/bag in May last year, in real terms. The current prices for fine cup coffee are similar to that for the “rio beverage” (lower quality) in the same period last year.

On May 31st, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 991.05 (USD 195.13)/bag, a steep 8.1% down from that on April 28th.

As for robusta, the CEPEA/ESALQ Index (Espírito Santo) for the robusta coffee type 6, screen 13, closed at BRL 700.64 (USD 137.95)/bag on May 31st, 4.9% up in the the same period.

Harvesting update

The harvesting of the 2023/24 crop has begun in all Brazilian regions. According to Cepea collaborators, both the quality and the volumes of arabica coffee harvested so far are as expected.

As for robusta, in Espírito Santo, weather issues damaged crops, majorly at the beginning of the cycle, which is resulting in crop failures. Thus, farmers have been concerned about the robusta output in that state, where 20-25% of the crop has been harvested. In Rondônia, 45% have been harvested.

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