Sunday 14 July 2024
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Rains from late September may have improved crops conditions in Brazil, Cepea

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SAO PAULO, Brazil – With the Brazilian coffee output in 2022 still uncertain, concerns about production in other countries, such as Colombia and Vietnam, and the fear of a world recession – which could reduce consumption, majorly of arabica coffee – prices fluctuated in Brazil in September, says Cepea in its latest bi-weekly analysis.

On September 30th, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,286.80 (USD 239.23)/bag, 4.27% lower than that on August 31st.

Sales were low in Brazil last month, and only small amounts were traded. Actually, domestic liquidity has been low for months, influenced by the lower volume harvested in the 2022/23 season and by the fact that farmers preferred to wait for prices to rise in order to resume closing deals.

The rains from late September may have improved crops conditions, says the analysis from Cepea

According to agents consulted by Cepea, in some areas in the Cerrado Mineiro and the Mogiana (SP), the lack of rains had already resulted in losses of the first flowers. However, farmers have been more optimistic about the possibility of a new blooming.

Robusta

Robusta sales were low in September too, and prices remained stable, at around BRL 740.00 per bag for the robusta type 6. On September 30th, the CEPEA/ESALQ Index (Espírito Santo) for the robusta coffee type 6, screen 13, closed at BRL 737.73 (USD 137.15)/bag, 1.6% down from that on August 31st.

As for the weather, it rained in Rondônia in late September. In Espírito Santo, agents have been worried about the current winds, which may hamper flower set. Still, despite the possibility of more rains, the drought that lasted for months is a concern, and the water stress is still high.

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