Brazilian physical coffee market remains very firm

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The physical market remains very firm and linked to the oscillation of ICE and dollar, especially for the best cups of arabica. Even subject to corrections, prices remain very close to the highs, which keeps sellers calm and reinforces the defensive stance of supply. With this scenario of high prices and well-capitalized growers, the market remains short of business.

Arabica good cup from the south of Minas Gerais is around BRL 1,070 to 1,080 per 60-kg bag in the physicals. The indications for future crops range from BRL 1,100 to 1,130 for Sep/22 and BRL 1,150 to 1,170 for delivery and payment in September 2023. Fine cup from Cerrado is indicated from BRL 1,090 to 1,100 per bag in the physicals. The market has changed very little and remains in a favorable region for sellers.

            But the highlight amid arabicas continues on weaker cups. Arabica rio with 20% of defects in the region of Matas de Minas is indicated from BRL 980 to 990 per bag. The lower physical supply in the current season, as the harvest was carried out under mostly drier climate, explains the additional firmness of the description. Conillon type 7/8 in Colatina, Espírito Santo, keeps gaining value and is trading at BRL 750 per bag. The roasted and ground industry remains aggressive, ensuring firm prices. The high on ICE Europe increases external competition, justifying this stance.