SAO PAULO, Brazil – Arabica coffee prices remained practically stable in the Brazilian market in the first fortnight of April, reports Cepea its latest analysis. Between March 31 and April 14, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, dropped by a slight 0.28%, closing at BRL 1,240.14 (USD 264.31)/bag on April 14.
In Brazil, most sellers stayed away from the market in the first half of the month, expecting values to increase.
Besides, with a lower harvest and the high number of deals previously closed at higher prices, a large amount of the coffee produced in 2021/22 had been sold by the end of March.
According to Cepea surveys, farmers only have 10 – 20% of the Arabica output from the 2021/22 season
Most of these farmers are expected to resume selling higher volumes only when prices rise or when the harvesting of the 2022/23 crop begins, in order to pay for the activities.
As for crops, conditions did not change much in the first fortnight of April, and the harvesting is supposed to begin in May, according to agents.
Robusta
Robusta coffee prices increased in Brazil in the first half of the month, influenced by valuations of future contracts and the absence of sellers in the national market.
At ICE Futures, robusta contracts increased, reflecting the dollar depreciation against the Real, technical factors and the current low supply of robusta coffee in Vietnam because of the offseason.
Early in the year, robusta values were at high levels, underpinned by industrial demand, which was firm; currently, farmers are waiting for prices to increase and/or for the 2022/23 season to begin in order to sell the remaining of the 2021/22 crop.
According to Cepea surveys, from 85 to 90% of the current robusta crop has been sold.
Thus, robusta quotations increased and surpassed BRL 800/bag. On April 14, the CEPEA/ESALQ Index for the robusta type 6, screen 13, Espírito Santo, closed at BRL 822.53 (USD 175.30)/bag, 2.14% higher than that on March 31.
