The price of Brazilian arabica coffee is moving sideways, after following the gains in New York in August and September. The industry is more relaxed and has avoided carrying very large stocks, confident in domestic supply. High interest rates also discourage the formation of large stocks due to the high financial cost.
The justification lies in the large robusta crop and the low external competitiveness of this coffee, which has limited the pace of shipments. This scenario guarantees a comfortable supply in the domestic market.
The factor supporting prices is precisely the shorter-term stance of sellers, who are holding coffee in anticipation of higher prices. This behavior should continue until the market begins to see the new crop, which starts with conillon/robusta between March and April.
