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Saturday 09 November 2024
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Smaller Arabica coffee beans may affect the final volume harvested by Brazil, Cepea

Players have been complaining about small-sized coffee beans since the beginning of the season. They expected that their size would increase as the harvesting advances, which has not been occurring. It is worth noting that weather conditions have been a challenge in the Central-Southern area in Brazil since the flowering

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SAO PAULO, Brazil – The Arabica coffee harvesting is close to the end; therefore, many producers have been trying to standardize the batches, due to the major bottleneck of the 2024/25 season: small-sized coffee beans. Players surveyed by Cepea say that this aspect may affect the final volume harvested by Brazil in the 2024/25 crop.

Players have been complaining about small-sized coffee beans since the beginning of the season. They expected that their size would increase as the harvesting advances, which has not been occurring. It is worth noting that weather conditions have been a challenge in the Central-Southern area in Brazil since the flowering.

As for robusta, there also have been reports of small-sized coffee beans, which can affect the final volume of the crop and the formation of batches that had already been contracted.

The price average for arabica coffee in July is the highest in real terms (IGP-DI June/24) since February 2022. The CEPEA/ESALQ Index for the arabica coffee type 6, delivered in São Paulo, averaged BRL 1,419.72 per 60-kilo bag, 5.22% more than in June/24 and 73.2% above that verified in the same month of 2023.

Prices oscillated in July. The sector is focused on the volume supplied by Brazil and on the possible robusta crop failure in Vietnam, due to unfavorable weather conditions. Moreover, the Brazilian currency is devalued against the US dollar, which affects world quotations, mainly for arabica.

As for robusta, the CEPEA/ESALQ Index for the type 6 closed at BRL 1,302.61 per 60-kilo bag on July 23, the highest value since November 2001, in real terms (IGP-DI June/24). The average of July was BRL 1,270.41 per 60-kilo bag, also the highest of Cepea series, upping 4.6% compared to June and 95.66% in relation to July/23.

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