At the beginning of this year, rainfalls have been contributing to grains development. At the same time, precipitations and high temperatures increase the risk of diseases, like the rust. However, for a while, the scenario is positive.
The harvesting of robusta should start in April and of arabica, from May on. If it rains in these periods, the grains can be damaged.
In the domestic market, growers were more willing to trade, even with the carnival (on Feb 4 and 5th). The reason was the superior Brazilian prices, due to the strong increase in the international market - the contract May/08 reached almost 160 cents of dollar per pound at the at the ICE Futures (New York Board of Trade). The support came from the restricted robusta supply in Asia, which has boosted the arabica futures.
On Friday, Feb 15th, the CEPEA/ESALQ Index for the arabica type 6, delivered in Sao Paulo (capital) closed at 287.54 reals or164.31 dollars per bag of 60 kilos, increasing 6.13 percent in Real over Jan 31st. On Thursday, Feb 14th, the Index has reached 288.44 reals or 164.82 dollar per bag - in Real, this was the highest value since the beginning of this year; in dollar, the maximum since April 1998.
For the robusta type 6, in the origin Espirito Santo state, the Index raised 4.38 percent in Real, at 220.32 reals or 125.90 dollars per bag of 60 kilos. The upward trend in Brazil was also linked to the increases in the international market.