Thursday 25 July 2024
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Robusta quotes drop in October; Arabica prices rise slightly, says CEPEA

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Rains returned to the Brazilian Arabica-producing regions in the second fortnight of October, favoring crops – many had been facing problems with drier weather and intense heat, reports CEPEA.

Rains were highly expected by the sector, mainly at Cerrado Mineiro and Mogiana, where the agents consulted by Cepea had reported drops of developing fruitlets.

Regarding Robusta, light rains were observed in Espírito Santo (ES) between October 23 and 30.

Agents believe that the warm weather and low rain amount affected crop conditions in that state.

However, growers from ES are concerned with the weather, reducing the volume of water for irrigation, since water levels at reservoirs have been decreasing day by day in that region.

Thus, grain development may be hampered if it does not rain significantly in November.

In Rondônia, the warm weather in the last weeks affected coffee crops as well. However, it has rained in that state, bringing relief to the crops. In Bahia, agents claim that the weather continues favorable to coffee production.

Prices

The CEPEA/ESALQ Index of Robusta type 6, screen 13, Espírito Santo State, dropped in October, averaging 382.44 BRL per 60-kilo bag in the month. On October 31, the Index closed at 372.71 BRL (113.80 USD) per 60-kilo bag, 5.95% down compared to that on September 29.

International price drops and lower domestic demand pressed down Robusta quotes last month. According to Cepea collaborators, Brazilian roasters claimed to have enough inventories and remained away from trades.

As for Arabica, the blooming of flowers in most Arabica producing regions and the probable higher production pressed down sharply domestic and international prices. Growers remained away from the spot market in October, waiting for rains. Besides, with the Brazilian Holiday on October 12, agents retracted and liquidity was low in the domestic market.

On October 31, the CEPEA/ESALQ Index of Arabica type 6, hard cup or better (delivered in São Paulo city), closed at 451.20 BRL (137.77 USD) per 60-kilo bag, 0.6% up compared to that on September 29.

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