SAO PAULO, Brazil — After the rains observed in early August in Espírito Santo, a new and large flowering was induced in the robusta crops from that state – according to Cepea collaborators – flowers have opened in 60 to 70% of the crops. Agents have reported that the 2020/21 crop is developing well.
In Rondônia, however, the weather has been unfavorable to crops. High temperatures and the high incidence of sun’s rays have been burning the open flowers. However, it is worth to mention that the flowerings in Rondônia were induced by irrigation and are not very representative in the total planted area. Large rain volumes are still necessary for a larger flowering to occur.
Arabica
As the harvesting is ending in all arabica-producing regions, agents are now focused on flowerings. So far, flowers have opened in some crops from São Paulo, where the weather has been firm, which could hamper flower settlement. In the remaining areas, although plants already have flower buds, Cepea collaborators believe larger rain amounts are needed for flowers to open.
Market in August
Arabica coffee prices increased sharply in August, due to sellers’ retraction, the US dollar appreciation against Real (by 8.7%) and international price rises for this variety. This scenario attracted sellers to the Brazilian market.
On August 30, the CEPEA/ESALQ Index for arabica coffee type 6 (delivered in São Paulo) closed at 417.18 BRL (100.99 USD) per 60-kilo bag, 3.6% up compared to that on July 31.
For robusta, quotes increased sharply too, due to the US dollar appreciation and higher demand. This context increased liquidity in Brazil, and deals were closed in both the spot and the future markets (for exports too). The CEPEA/ESALQ Index for the robusta type 6, screen 13, Espírito Santo State, closed at 291.58 BRL (70.58 USD) per bag on August 30, 6.1% up compared to that on July 31.
