The physical market prices ended up falling, felling the recent losses on ICE. The dollar, even volatile and weaker, mitigated external losses, which helped to keep domestic physical prices still close to the top. Good cup is around BRL 700 to 710 a bag in the south of Minas. Fine coffee, on the other hand, is pegged at BRL 720 to 730 per bag in Cerrado and Mogiana.
The indications for the new crop range from BRL 710/720 to 730/740, respectively, for good and fine cup with delivery in Sep/21. The idea for Sep/22 ranges from BRL 730 to 760, depending on description. Although the finest coffees have distanced themselves from the level of BRL 800 for delivery in Sep/22, they are still attractive to sellers. Even so, the sales flow is slower, with growers staggering sales and avoiding coming to the market on bearish days.
Rio cup also retreats but remains above the level of BRL 500 in the Matas de Minas region. Conillon shows strength, finding support from external demand. In Colatina, type 7/8 is indicated between BRL 435 and 440 per bag. External interest helps to mitigate the seasonal effect of the arrival of new conillon in the market. In this sense, the industry should be careful not to repeat what it did last year, when the accelerated pace of shipments absorbed domestic supply, supporting prices and hindering the life of domestic buyers right at the start of the crop.