PIRACICABA, Brazil – Quotations of robusta coffee upped significantly in January, boosted by international and domestic aspects, according to the latest report from Cepea, the Economic Research Center at Esalq (“Luiz de Queiroz” College of Agriculture), USP (University of São Paulo), in Piracicaba.
The CEPEA/ESALQ Index (Espírito Santo) for the robusta type 6, screen 13, averaged BRL 802.67 per 60-kilo bag, for an increase of 8% (almost 60 Reais per bag) compared to the average verified in December/23. On January 31, the Index closed at BRL 854.71/bag, the highest value, in real terms (IGP-DI) since October 7, 2021.
Price rises are linked to the good international demand for the Brazilian product. Houthis attacks to commercial ships in the Red Sea have been affecting the delivery of coffee from Vietnam to Europe.
Thus, ships need to change their route, which increases costs and delays the delivery. As a result, the demand for Brazilian coffee has been increasing. In mid-February, values were fluctuating; however, price rises prevailed.
The CEPEA/ESALQ Index for arabica coffee averaged BRL 990.63 per 60-kilo bag in January, 1.6% up in relation to December/23. In the first fortnight of February, values were fluctuating, influenced by the instability of international quotations.
These significant price oscillations and carnaval in Brazil pushed producers away from trades in the spot market.
Data from Cecafé indicate that 3.96 million 60-kilo bags (arabica and robusta) were shipped in January, 4.4% down compared to December/23, but for an increase of 39% in relation to January/23.
In the accumulated of the 2023/24 season (from June/23 to January/24), Brazilian exports totaled 26.98 million bags, 21.3% more than in the same period of the crop before (2022/23).
