SAO PAULO, Brazil – After being near BRL 1,500.00 per 60-kilo bag in February, arabica coffee prices dropped steeply in Brazil in March. According to the latest report from CEPEA, on March 31, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,243.64/bag (USD 261.21/bag), a steep 190.70 Reais/bag down (-13.3%) compared to that on Feb. 25.
Arabica devaluations in Brazil were linked to the dollar depreciation against the Real and decreases in the future contracts of this variety
On March 31, the American currency closed at BRL 4.761, 7.46% down from that on Feb. 25. At ICE Futures, values are being pressed down by the Russia-Ukraine war, which is raising uncertainties about coffee consumption worldwide.
Amid these uncertainties and arabica devaluations, sellers stayed away from the national spot market, and only some volumes were purchased sporadically. The agents consulted by Cepea believe farmers will continue cautious when selling coffee until the beginning of the 2022/23 harvesting – scheduled for May.
Robusta
The domestic prices for robusta coffee remained stable in March. On March 31, the CEPEA/ESALQ Index for the robusta type 6, screen 13, EspÃrito Santo, closed at BRL 805.29 (USD 169.14)/bag, a slight 0.06% up from that on Feb. 25. Most coffee farmers closed deals sporadically in the spot market during the month. Higher volumes are expected to be sold as the harvesting steps up.
Crops
The farmers in Rondônia were harvesting small volumes. According to agents, activities are expected to step up in the second fortnight of April. On the other hand, in EspÃrito Santo, farmers are preparing for the 2022/23 season, which is forecast to begin in late April.
