SÃO PAULO, Brazil – Harvesting operations of the new Arabica crop are gradually advancing in some regions in São Paulo State, but sales of this coffee variety have been low in the national spot market says a report from Cepea/Esalq research centre, part of the University of Sao Paulo.
According to agents consulted by Cepea, the beans harvested in Garça (SP) that arrived for cupping sessions have good quality. On the other hand, in the Mogiana, it has been said that beans are still green.
Still, some farmers opted to continue the harvesting, since rains led many beans to fall off. The farmers in the remaining producing regions in Minas Gerais and in Paraná States decided to wait for some more days to then begin activities.
In general, arabica coffee has been traded at around BRL 1,000.00 per 60-kg bag in the Brazilian spot market, however, this price level has not heartened farmers, who prefer to keep their batches.
With the new crop about to arrive at the market, prices may be pressed down – many purchasers have already left the market, waiting for the new coffee. However, the farmers that have made cash flow are not selling coffee either, which may limit possible devaluations.
On May 15th, the CEPEA/ESALQ Index for arabica coffee type 6, delivered to São Paulo city, closed at BRL 1,037.39 (USD 211.97)/bag, 3.7% down from that on the last working day of April (28th).
Most robusta farmers began the harvesting in Espírito Santo and in Rondônia States in the first fortnight of May. It has been reported that, in ES, the first batches that arrived for classification had higher shares of green beans, which has been gradually decreasing as activities advance.
As for prices, the CEPEA/ESALQ Index (Espírito Santo) for the robusta coffee type 6, screen 13, closed at BRL 667.01 (USD 133.72)/bag on May 15th, 0.16% down from that on April 28th.
