PIRACICABA, Brazil – In its fortnightly report, CEPEA – Center for Advanced Studies on Applied Economics of the Department of Economy, Administration and Sociology, Luiz de Queiroz College of Agriculture (ESALQ) of the University of São Paulo, based in Piracicaba, SP – provides its usual snapshot of the situation in the Brazilian domestic coffee market.
The CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 2,098.06/60-kg bag, the highest since June 9, 1997, in real terms (deflated by IGP-DI October/24). From October 31 to November 29, the Index rose 37.55%.
Players surveyed by Cepea say that the supply is limited in the spot market, boosting quotations. However, despite price rises, arabica coffee trades moved at a slow pace in late November, given that producers were unwilling to close deals, expecting new increases.
Data released in November by the USDA indicate that the 2024/25 coffee season in Brazil is likely to hit 66.4 million 60-kg bags, below that projected in June (69.9 million bags). The Department says that unfavorable weather conditions in regions that produce arabica coffee in Brazil are the main reason for the decrease in the estimate.
ROBUSTA – Prices have been registering records because of low stocks. The CEPEA/ESALQ Index for the robusta type 6, screen 13, Espírito Santo, closed at BRL 1,784.02/bag on November 29, upping 22.97% compared to Oct. 31. It is a new record of Cepea series (since November 2001), in real terms – values were deflated by IGP-DI October/24.
Exports in October
Data from Cecafé indicate that coffee shipments hit the record of 4.92 million bags in October, 11.6% more than in October/23 and moving up 3.27% against the previous record (4.77 million bags in Nov/20).
