Price drops 48.00 reals per bag in a "positive year"

The CEPEA/ESALQ Index for arabica coffee decreased 8 percent in Real and 5.35 percent in dollar in the accumulated of March, closing at 244.47 reals or 118.62 dollars per bag of 60 kilos this Friday, Mar 30th.

From the beginning of this year until now, Brazilian arabica coffee prices have already decreased around 48.00 reals per bag, in nominal terms. According to players, however, there are no negative fundaments, since the supply is too limited in Brazil.

The reason for the decreases should be that there is an expressive volume of the coffee from the 2006/07 crop with growers yet - around 40 percent of the total of 42.5 million bags.

Market players bet on increasing prices in two moments. First with the proximity of the winter season in Brazil, when usually appear some speculations about frosts. Another moment should be October, beginning of off-season, which should coincide to the higher international demand due to the winter proximity in the North-Hemisphere.


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