Best coffees surpass BRL 1,000 per bag

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The physical market is testing new highs, stimulated by the escalation on ICE and relatively firm dollar. The Sep/21 has accumulated gains of 28% in NY since the frost. The dollar, in the same period, fell less than 3%. A net balance very favorable to coffee price in the domestic physical market. Good cup from the south of Minas Gerais is indicated at BRL 1,070 a bag, and fine cup from Cerrado reaches BRL 1,120 a bag. Sellers’ caution, in the face of new frost risk, helps to support prices.

Rio cup followed the so-called group 1 coffees and hit BRL 790 a bag in the Matas de Minas region. The weakest cups stand out for a greater flow of business, especially in the Matas de Minas region. Growers take advantage of the uptrend to get more liquidity, feeling relieved by being outside of the area jeopardized by the cold weather.

Finally, conillon also found space to climb, and type 7/8 in Colatina is pegged at BRL 585 a bag. The strong appreciation of arabica and the conillon highs have scared the domestic industry. Some industries have already announced an increase in the price of industrialized product by trying to keep up with the increase in raw material cost. Hard arabica with 600 defects for domestic consumption, for example, is pegged between BRL 920 and 940 per bag in the origin.