Brazilian coffee market kept moving at a slow pace in July. Due to the low prices, growers retreated. The dollar devaluation against the Real also limited the supply of grains of better quality.
In the international market, arabica quotations remained decreasing at the ICE Futures, especially due to the forecast of a significant production in the Brazilian 2008/09 crop. On Thursday, July 31st, the contract September/08 closed at 139.35 cents of dollar per pound, down 9 percent over June 30th.
In Brazil, the CEPEA/ESALQ Index for the arabica type 6, delivered in Sao Paulo (capital), closed at 249.38 reals or 159.65 dollars per bag of 60 kilos on Jul 31st, decreasing 5.6 percent in Real over Jun 30th. For the robusta type 6, in the origin Espírito Santo state, the Index downed slight 0.77 percent in Real during the same period, at 215.82 reals or 138.17 dollars per bag on Jul 31st.
Concerning the arabica harvesting, activities moved at a better pace at the end of July. In the Sul de Minas region, the harvest has reached 20 percent of the total cultivated and in the Mogiana Paulista, roughly 40 percent. In Espírito Santo state, activities are forecasted at between 30 and 40 percent. (Cepea - Brazil)