Saturday 13 July 2024
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Indexes for arabica and robusta drop steeply in October, says Cepea

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SAO PAULO; Brazil – The prices for arabica coffee dropped steeply in October, being lower than BRL 1,000 per 60-kilo bag, which had not happened since August 2021, says CEPEA in its latest report. Between September 30 and October 31, the CEPEAESALQ Index for arabica coffee type 6, delivered to São Paulo city, decreased by 280 Reias/bag (22%), ending the month at BRL 1,005.33 (USD 194.30)/bag. On October 28th, the Index closed at BRL 987.53 (USD 185.84)/bag.

Devaluations reflected the favorable weather in Brazil and economic issues worldwide. Frequent rains along the month contributed for a good development of crops at the beginning of the season.

Abroad, higher inflation and interest rates in the United States and in Europe and expectations for lower coffee consumption helped to put pressure on quotations in Brazil.

Crops

Amid frequent rains, fruitlets are being observed. However, Cepea collaborators reported that the hailstorm from early in the month in southern Minas Gerais and last week in the Matas de Minas (Zona da Mata) damaged some crops.

Robusta

Robusta prices dropped in October too. On Oct. 31st, the CEPEA/ESALQ Index (Espírito Santo) for the robusta coffee type 6, screen 13, closed at BRL 587.01 (USD 113.45)/bag, 150.72 Reais/bag lower (20.4%) than that on September 30th.

On October 27, the robusta Index closed at RL 580.25 (USD 109.50)/bag, the lowest nominal level since July 30th, 2021.

The international devaluation of robusta coffee drove Brazilian agents away from the market. While agents from the industry tried to purchase coffee at lower prices, sellers expected to receive higher values, hampering deals most of the month.

Crops

In Espírito Santo, the arrival of some rains brought some relief to farmers, although a hailstorm occurred in some areas. In Rondônia, rainfall was considered positive, allowing the development of fruitlets on many farms.

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