SAO PAULO, Brazil – The CEPEA/ESALQ Index for the robusta type 6 hit records of Cepea series (which has started in June 2001) during practically the entire first fortnight of April, writes CEPEA in its latest report. It is worth noting that the record was firstly reached at the end of March.
The CEPEA/ESALQ Index for robusta closed at BRL 1,104.67 per 60-kilo bag on April 15, increasing steeply 16% (or 152.25 Reais per bag) in the partial of this month (up to April 15). In this year alone, the Index has risen 45.5% (or 345.62 Reais/bag).
Price rises are related to problems in both the production and the flowing of the variety from Vietnam, world’s biggest robusta producer. The remaining volume in the country is low and a crop failure is expected because of unfavorable weather conditions.
As for the coffee flowing, conflicts in the Red Sea, which have started in December/23, have been preventing commercial ships to move around that area, which is the main route between Asia and Europe.
Therefore, the international demand continues to be allocated to Brazil. Cecafé indicated that Brazil shipped almost 4.3 million bags (arabica and robusta) in March, a record for the month. Robusta exports alone totaled 850 thousand bags last month, 50% above that in February and almost seven times more than in March/23.
Robusta stocks from the 2023/24 season are limited in Brazil, and agents are focused on the 2024/25 harvesting activities. Players surveyed by Cepea say that activities have started both in Rondônia and in Espírito Santo, but they are still at a slow pace.
The CEPEA/ESALQ Index for the type 6 arabica coffee averaged BRL 1,244.88 per 60-kilo bag on April 15, for an increase of 20.9% compared to March 28, and the highest since September 28, 2022, in real terms.
