Growers keep limiting supply in Brazil

Brazilian coffee prices kept moving up during the second fortnight of January. The support came from higher demand and also from increasing international arabica values. On January 30th, the CEPEA/ESALQ Index for arabica type 6, delivered in Sao Paulo (capital) closed at 274.64 reals or 118.89 dollars per bag of 60 kilos, up 8.3 percent in Real from Dec 30th. A great part of growers, however, remain limiting supply of better quality, waiting for new increases from now on - besides the biennial cycle of in 2009/10 crop, at the beginning of the year, trades normally move at a better pace.

According to Cepea, growers have roughly 25 percent of 2008/09 arabica coffee crop to be traded, considering the regions of Cerrado, Zona da Mata, Sul de Minas in Minas Gerais state and of northwest of Paraná state.

For robusta, in Espírito Santo state, main national producer of the variety, a little more than 75 percent of the production were already traded. In Rondônia state, trades have already overtaken 95 percent of the total. The CEPEA/ESALQ Index for robusta type 6, in the origin Espírito Santo state, increased 6.2 percent in Real during the month, to 232.81 reals or 100.78 dollars per bag of 60 kilos on Jan 30th. (Cepea - Brazil)

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