Coffee surpasses BRL 700 a bag in the brazilian physical market


        Porto Alegre, February 26, 2021 – Very firm and busy physical market for coffee in Brazil. The combination of a rally on ICE with the dollar supported at a high level ensures market stability. Higher prices attracted sellers, who have also found aggressive buyers on the other side. In the south of Minas, good cup broke through the level of BRL 700 and is trading at BRL 715 to 720 a bag with up to 15% of defects. That same coffee in early February changed hands at BRL 655 a bag. If compared to the same period last year (BRL 480), there is a nominal gain of 49%. The idea for commitments with the new crop ranges from BRL 740 to 750 and from BRL 770 to 780 per bag respectively for Sep/21 and Sep/22, also well above the historical deflated average for the month of September. The market is advancing into an area more favorable to sellers.

        Fine cup is indicated between BRL 745 and 750 in the physicals, both in Cerrado and Mogiana. The indications for fine cup of future crops range from BRL 760 to 770 for Sep/21 and from BRL 790 to 780 per bag for Sep/22, depending on the characteristics of lots.

        Rio coffee in the Matas de Minas region followed the uptrend of group 1 coffees and also went up to BRL 500 with 20% defects. Domestic demand for Rio cup has increased, which explains the small appreciation. Conillon type 7/8 from Espírito Santo also rose, indicated at BRL 435 per bag in the physicals. Domestic industry is getting more interested in conillon to reduce costs.

    SAFRAS Latam