The Brazilian physical coffee market had a positive week, driven by the appreciation of arabica in New York and robusta in London, in addition to the support of a stronger dollar. The increased presence of sellers contributed to a more active trading environment. High prices stimulated sales, with growers taking advantage of the positive moment to bolster cash and gain leverage to manage trade flow throughout the season.
The strong volatility in futures markets increases the challenges for traders and growers. Exporters took advantage of the high prices in New York to improve prices paid to growers and reduce differentials, which enlarged purchasing margins and helped attract external demand.
In southern Minas Gerais, a bag of good cup arabica rose from BRL 2,240 to 2,340. The expected new crop for delivery in September 2026 is around BRL 2,050 per 60-kg bag, an increase of more than BRL 70 this week. Fine cups also appreciated, particularly in the case of larger screens, with average prices of BRL 2,430 per bag, nearly BRL 100 above the week earlier. The weaker arabica variety rose less, maintaining the interest of the domestic roast and ground industry, with this variety emerging as an alternative for blending.
Conillon continues to recover after a slight low, with type 7/8 in Colatina, Espírito Santo, approaching BRL 1,410 per bag, in a weekly increase of BRL 20. The flow is more concentrated in domestic demand, with less aggressive purchases by roasters. Some occasional deals were reported at around BRL 1,480 to 1,500 a bag of 200-defect conillon coffees delivered to the industry in São Paulo, Minas Gerais, and northern Paraná.
Brazilian growers should remain attentive to the weather and early signs of the potential of the next Brazilian crop. Recent rains are expected to stimulate new blossoming over the coming weeks. Besides the weather, developments in negotiations between Brazil and the United States regarding import tariffs remain on the radar. The expectation of a possible exemption for Brazilian coffee is bringing optimism to the market. Growers understand the positive momentum and are more involved in negotiations—cautiously, slowing sales and taking advantage of recent gains in the futures market and exchange rate to boost their cash flow.
