Saturday 25 May 2024
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Higher demand from the industry raises Robusta prices in Brazil, Arabicas also on the rise, Cepea

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TME - Cialdy Evo

SAO PAULO, Brazil – Prices for robusta coffee increased in Brazil in August, influenced by international valuations of this variety and a higher number of purchasers from coffee roasters in the national spot market, informs CEPEA in its latest report. The demand for robusta increased because arabica prices have been high, leading agents from the industry to raise the share of robusta in blends.

This scenario added to the winter time in Brazil and the consequent increase in the consumption of warm beverages, such as coffee, resulted in a higher number of deals for robusta in the Brazilian spot.

La Cimbali

Thus, between July 29 and August 31, the CEPEA/ESALQ Index (Espírito Santo) for the robusta coffee type 6, screen 13, rose by 4.8%, to BRL 749.71 (USD 144.12)/bag on August 31st.

Crop development

The weather was dry in the Robusta-producing states in August, and rains are needed for blooming (2023/24 crop). Thus, some farmers decided to induce blooming by irrigation.


Agents in Brazil and abroad have been monitoring the early blooming that occurred in late August in most Brazilian regions surveyed by Cepea (except in the Cerrado Mineiro) and are aware of forecasts for low rainfall in early September. Although not all crops bloomed, the flowers that opened may fall, which would, once again, limit supply next year.

It is important to highlight that the rains in August induced an early blooming and may have lowered the quality of the beans that were drying.

Arabica prices

The domestic and international prices for arabica coffee skyrocketed in late August, boosted by concerns about the 2023/24 crop. On August 31st, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,344.20 (USD 258.40)/bag, 3.3% higher than that on July 29th. On August 26th, this Index hit BRL 1,351.64/bag, the highest daily level since July 7.


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