Colombian coffee milds and Brazilian fine cup gain relative value

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Global shipments totaled 118.7 million bags in the 20/21 season of the ICO (Oct/Aug), which corresponds to an increase of 1.9% over the same period of the previous business season. The bases against the ICO reference prices indicate a relative appreciation of Colombian milds and the weakening of robusta. The milds from Central America have walked on the sidelines, while Brazilian naturals show a timid valuation.

Here in Brazil, fine cup with screen 17/18 has gained value and is pegged at -10 cents FOB Santos against ICE US, taking advantage of the high of milds. MTGB good cup is around -20 cents against ICE US, reflecting the shorter stance of local sellers. Rio cup 17/18 is indicated in the flat price at USD 203 per 50 kg bag, finding support in the scarcity of physical supply and good demand. The Rio 17/18 indication for Jan/Feb is -23 cents against ICE US.

Brazilian conillon, on the other hand, has lost relative value. After being indicated at +20 against ICE Europe, it went down on falling interest of the domestic industry and its premium is at +8 cents against ICE Europe when converted into cents/lb.