Brazil sells 90% of last coffee crop before new harvest

RIO DE JANEIRO, BRAZIL – Safras & Mercado data shows an increase of 3 percentage points in sales compared to the previous month, slightly above the rate at the same time last year for the 2019/20 crop (89%) and also the average of the past five years for the period (88%).

“The arrival of the Brazilian 2021 crop explains the advance in the flow of sales,” Safras & Mercado consultant Gil Barabach said in a note.

Some producers of canefora coffee (robusta or conilon), which usually start work before those who grow arabica, have already started, but are still few, according to the Center for Advanced Studies in Applied Economics (Cepea).

“The expectation is that a more significant volume of robusta coffee will reach the market between the end of April and the beginning of May. So far, few beans are available for marketing, since producers are focused on deliveries scheduled in previous months,” Cepea said, referring to Rondônia.

Considering Safras & Mercado’s index for commercialization, sales from the last harvest totaled 62.80 million 60-kilo bags.

According to Barabach, the bullish dollar and the recovery in the New York Stock Exchange (ICE Futures US) ended up raising prices in the domestic physical, which brought a little more sellers to the market.

“Despite the interest, the business flow is still very slow,” said the consultant.

Arabica sales for the 2020/21 harvest rose to 89% of production, and conilon sales gained a little more pace and reached 95% of the total forecast.

Source: Moneytimes