SAO PAULO, Brazil – The 2024/25 coffee harvest has been developing well in Brazil and at a faster pace compared to that verified in the season before, says CEPEA in its latest report. However, the productivity of these crops is below that expected for a positive biennial cycle.
Players surveyed by Cepea say that the lower quality of the coffee beans that have been classified may affect the contracts, since it limits the formation of batches.
It is worth noting that, after the second fortnight of April, when coffee prices were above BRL 1,200 per 60-kg bag again, producers closed many term contracts for September/24 delivery.
In spite of that, the dry weather has helped crop activities. As beans dry faster, the quality might increase.
Values of both arabica and robusta coffee have been at higher levels. The exchange rate and weather issues in Vietnam and in Brazil (the long period without rainfall may affect the next season, although the dry weather helps both the harvesting and the drying of coffee beans) continue to sustain prices.
The CEPEA/ESALQ Index for the arabica coffee type 6, delivered in São Paulo, closed at BRL 1,370.81 per 60-kilo bag on June 28, upping 6.59% in relation to that on May 31.
As for robusta coffee, on June 28, the CEPEA/ESALQ Index for the type 6 closed at BRL 1,222.46 per 60-kilo bag, for an increase of 6.37% in the accumulated of June.
