Albeit timidly, the market resumed business with future crops in Brazil. Price escalation has revived the interest in such positions. On the sales side, doubts about production and the high percentage already committed, especially of Brazil’s 2022 crop, serve as a limiting factor for new business. Trading companies are more cautious about future positions. Cash flow issues have made exporters more selective, especially for longer positions. Credit lines are strangled, and new lines are more difficult.
The SAFRAS survey indicates that sales of the 22/23 crop have reached 29% of Brazil’s 2022 productive potential until December 10. This corresponds to an advance of 3% over the previous month. The indication is subject to adjustment as it is based on potential production. In the case of arabica, the commitment of Brazilian growers reaches 33%, while for conillon it reaches 19%.
