Weak and less active internal physical market
Differentials in FOB exports ended up reacting, as a counterpart to the decline on ICE. Thus, good cup screen 14/16, which exchanged hands at -40 cents in early September, ended up gaining value and was indicated at the end of the month at -30 cents. It is true that it is still well below the same time last year, when it was trading at -13 cents. The behavior is similar for fine cup screen 17/18, which is indicated at -15 cents for near shipment.
Conillon rose less and is trading at -1 cent against ICE Europe converted into cents per pound. Finally, Rio screen 17/18 is exchanging hands in the physicals at BRL 70 a 50-kg bag.
The physical market finds support in the dollar, but business is still short. Good cup, which was trading at BRL 605 a bag in early September, is currently around BRL 530 a bag, down 12%. Fine cup from Cerrado fell from BRL 630 to 560 per bag.
Negotiations with future crops have also been scarce. The growers who got used to seeing prices well above BRL 600 a bag take a while to assimilate the current market level. Ideas for September 2021 are around BRL 540 to 550 in the south of Minas. Fine cup for September 2021 is around BRL 570 to 580 in Cerrado and Mogiana.
Rio coffee in Matas de Minas region is around BRL 385 a bag, with little interest. Conillon type 7 in Colatina, Espírito Santo, on the other hand, is indicated at BRL 395 a bag, finding support in the interest of the local industry.