The high dollar and the ICE recovery ended up raising prices in the domestic market, which brought a few more sellers to the market. Despite the interest, the business flow remains very slow. Besides little physical availability, growers also have more liquidity, being much more relaxed to manage their sales flow. The coffee’s bullish bias and the bet on the ‘weather market’ with the arrival of cold in Brazil also justify this stance of sellers in this period of seasonal transition.
The monthly survey by SAFRAS indicates that, until April 13, growers had already sold 90% of the 20/21 crop, up 3% from the previous month. Albeit slower, commercialization remains accelerated compared to the same period last year, when sales had hit 89%. It also continues slightly above the 5-year average (88% in the same period).
Arabica sales rose to 89% of production, a slight advantage over the same period last year (88%) and also above the 87% historical average. Despite the new rally, growers do not show any rush at the time of selling, prolonging positions with the remaining crop.
Conillon sales, on the other hand, gained a little more pace and reached 95% of the expected output, against 92% in the same period last year and 91% on the 5-year average. The arrival of Brazil’s 2021 crop explains the increase in the sales flow.