Brazilian physical market for coffee remains firm but short of business

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        Porto Alegre, February 19, 2021 – The brazilian physical market for coffee has had few trades and nearly unchanged prices. The lack of external direction and currency volatility help to remove liquidity from the market. Fine cup remains indicated between BRL 690 and 695 in the physicals, in both Cerrado and Mogiana. Price indications for future crops of fine coffee vary between BRL 695 and 705 per bag for Sep/21, and BRL 710 and 730 for Sep/22, depending on the characteristics of lots.

         In the south of Minas, good cup is around BRL 655 to 660 per bag with up to 15% of defects. Albeit slightly weaker, it is still an interesting price level to sellers. New crop with ideas ranging from BRL 665 to 670, and BRL 690 to 695 per bag, respectively for Sep/21 and Sep/22.

         Rio cup in the Matas de Minas region is pegged at BRL 470 with 20% of defects. The demand for Rio cup has increased, which explains the small appreciation. Conillon type 7/8 from Espírito Santo remains at BRL 410 per bag in the physicals.

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