Sector moves according to the "weather market"

Coffee market keeps oscillating according to the possible effects of the Brazilian winter season - this behavior is called "weather market". Besides the possibility of frosts, the lower grain supply is another factor that should support prices during this crop. According to the International Coffee Organization (ICO) report, published last week, the global inventories are inferior to 10 million bags, considered the lowest ones of the last years.

The global coffee production should total 112 million bags, increase only between 1.5 and 2 percent over the last crop - not enough to attend the demand. Last year, the consumption reached 118 million bags.

At the beginning of this year, Brazilian arabica coffee prices were at around 290.00 reals or 135.00 dollars per bag of 60 kilos. In May, values decreased to 230.00 reals or 120.00 dollars per bag, according to Cepea.

The CEPEA/ESALQ Index for arabica type 6, delivered in Sao Paulo (capital) averaged 235.38 reals or 122.59 dollars per bag on Thursday, May 31st, up 3.76 percent in Real over April 30th. Regarding arabica harvest, growers are starting activities little by little.

For robusta type 6, in the origin Espírito Santo state, the Index closed at 192.67 reals or 100.35 dollars per bag on Thursday, May 31st, up 3.77 percent over April 30th. Harvest activities in Espírito Santo state, major producer of this variety in Brazil, are moving at a good pace.


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