The flow of coffee exports from Brazil continues at a slow pace. In January, the country exported 3.33 million 60-kg bags of coffee (green + soluble), according to data from Secex. This corresponds to a decline of 17% from the same period last year. On the other hand, revenue rose 41%, reaching USD 713.2 million.
In the accumulated volume over the 21/22 business season (Jul/Jan), coffee shipments reached 23.01 million bags, down 19% from the same period of the previous year. Revenue grew 17% and reached USD 4.06 billion. SAFRAS projects shipments of 38 million bags for the 21/21 business season, which would represent a decline of 18% from last season. Brazil’s 2022 crop failure justifies the weaker external performance.
The FOB export differentials of Brazilian coffee adopt a different behavior. Good cup MTGB is indicated at -23 cents against ICE US this early February, slightly weaker. Fine cup 17/18 remains at -12 cents. Rio cup 17/18 is indicated at USD 242 per 50-kg bag (flat price), which corresponds to -30 cents against ICE US. Conillon 13 up reduced the premium to +10 cents against ICE Europe converted into cents/lb.
Brazilian coffee remains very competitive in the foreign market. The reference for MTGB good cup is 229.70 cents/lb (flat price), against 321.75 cents for Excelso coffee from Colombia, and USD 284.90 cents from Ethiopia.
