Physical coffee market shows slight reaction in Brazil

The physical market shows a timid reaction, following the external benchmark and the slight improvement in the dollar, but still without the strength to sustain more expressive gains. There is also a change in the attitude of those involved. While some time ago buyers were looking for offers, now sellers are showing more interest. And that marks a major behavioral change. The market is still much more inclined to check prices than close actual business. But the spread between bids and offers has narrowed, which indicates an attempt at compromise.

Good cup from southern Minas Gerais is indicated between BRL 1,240 and 1,250 a bag. Fine coffee, in both Cerrado de Minas Gerais and São Paulo’s Mogiana region, ranges from BRL 1,270 to 1,300 a bag. Commitments with the new crop remain quite close to the physical market prices, which keeps sellers away. Good cup for Sep/22 is between BRL 1,240 and 1,260 a bag and for Sep/23 between BRL 1,250 and 1,270. Well above the deflated average reference of the last 5 years for the price in September, which is around BRL 815 per bag. The cost has indeed gone up a lot, but even so this is still an inviting price.

Rio cup with 20% of defects from Matas de Minas is between BRL 1,090 and 1,120 a bag. And conillon 7/8 in the region of Colatina, Espírito Santo, remains firm, at around BRL 810 to 820 per bag in the physicals. A very short supply prompts support, although the flow of business remains thin. Industry is on the defensive, awaiting the advance of new conillon supply.