Internal physical market pressured by external context
The market weakness drives buyers and sellers away and takes liquidity from negotiations. The growers with few sales still have difficulty in assimilating the price lows. Exporters have been less aggressive, especially for the best coffees. The arrival of Colombian and Central American growers shifts the demand to these origins, which weakens these descriptions. The high dollar only partially compensates for the external decline. So, good cup is indicated in early October between BRL 515 and 520 a 60-kg bag, very far from BRL 600 a bag a few weeks ago. Sellers remain away. Fine cup from Cerrado ranges from BRL 550 to 560, also well below the BRL 630 at the beginning of September, with few trades.
Negotiations with future crops have also been shy. The growers who were used to hearing prices well above BRL 600 a bag must take a little longer to start accepting the current price levels. Ideas for Sep/2021 range from BRL 545 to 555 in the south of Minas. Fine cup for Sep/2021 is around BRL 565 to 575 in Cerrado and Mogiana.
Rio cup in Matas de Minas region has oscillated less, ranging from BRL 385 to 390 a bag, with little interest. Conillon type 7 in Colatina, Espírito Santo, dropped to 385 to 390 per bag. The decline was not sharper due to the high dollar and the interest from the local industry.