PIRACICABA, Brazil – After dropping steeply in the Brazilian market in the first three weeks of March, the prices for robusta coffee reacted and began to rise late in the month, writes in its latest report CEPEA, the economic research center at Esalq (“Luiz de Queiroz” College of Agriculture), USP (University of São Paulo), in Piracicaba.
The devaluations observed in the first weeks of March were linked to the lower volumes purchased by national coffee roasters and price drops abroad.
On the other hand, the recent valuations reflected the return of purchasers to the Brazilian spot market, which resulted in more deals being closed. Besides, robusta quotations increased in Vietnam, leading exporters to the Brazilian market.
Aware of the price rises in late March, sellers avoided selling high volumes, expecting values to increase higher.
Until March 20, the CEPEA/ESALQ Index (Espírito Santo) for the robusta coffee type 6, screen 13, had dropped a steep 12.6%. After that, prices began to rise, and the Index ended March 8% lower than that on February 28th, closing at BRL 638.64 (USD 125.99)/60-kg bag on March 31st.
Robusta crops
Heavy rains hit Rondônia State in late March, while in Espírito Santo, precipitation was sporadic. With crops developing well and the maturation stage of the beans coming to an end, farmers expect rainfall to decrease so that the first beans may be harvested in the coming weeks.
However, Climatempo (weather forecast agency) forecasts high rains for the coming days, with strong winds in RO. For ES, isolated rainfall is forecast.
Arabica
The quotations for arabica coffee fluctuated widely in March, however, devaluations prevailed. That scenario concerned agents, since the harvesting of the new crop is near, and the current prices are not considered satisfactory. Thus, deals were sporadic in March and only for low volumes.
Arabica crops
Crops development is ending, and the harvesting is expected to begin in a few weeks, except in northwestern Paraná, where activities will begin later than usual, since the beans are still green, rains are high in that region, and temperatures are low.
Climatempo forecasts high temperatures and rains in São Paulo and Southern Minas Gerais. In the remaining areas of MG State, the weather should be firm.
As for prices, on March 31st, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,1044.94 (USD 206.14)/60-kilo bag, 10% lower than that on Feb. 28th.
