The CEPEA/ESALQ Index for arabica coffee (type 6, delivered in Sao Paulo city) averaged 127.12 dollars per bag of 60 kilos this Thursday, November 16, up 12.21 percent in relation to October 31st. The current level is similar to that from February this year (off-season period). In this context, growers are more willing to trade. On the other hand, some of them keep retreated, waiting for new increases.
For robusta, prices reached 200.00 reals per bag, the highest value ever. The Index averaged 95.21 dollars per bag of 60 kilos, up 6.8 percent over to October 31st.
Even with rains in some Brazilian coffee crop areas, a new blooming has not been noticed. According to growers, since August, only 50 percent of the cultivated areas has shown good flowering; the other half was inexpressive. The reason for that is the larger production of the current crop, due to the coffee biannual cycle.
The lower production for the next crop (2007/08) motivates players to bet on higher prices in the next year. In the international market, arabica futures that expire in December reached 119.40 cents of dollar per pound on Thursday, Nov 9th, the highest value of the last six months.