Coffee sales in Brazil continue at a very steady pace. Growers, frightened by the decline in prices, remain on the defensive, preferring to measure their positions and betting on the off-season or some external improvement. Focus only on short-term needs. The month of December is already characterized by a slower flow in sales, with sellers avoiding closing deals, among other things, to escape income tax. On the other hand, there is not much aggressiveness on the part of buyers either. It is true that the external demand is still active, but it has reduced the volume of its positions. The logic is to continue working from hand to mouth, but without carrying stocks that must remain in the hands of growers. The financial cost, due to the high interest rates, justifies the demand strategy.
Thus, the SAFRAS survey indicates that, up to last November 14, sales of the 22/23 crop in Brazil reached 71% of production, up 6% from the previous month. The flow of sales remains well below the same period last year, when it reached 78% of the crop. However, in line with the average of the previous 5 years.
Arabica sales account for 67% of the total crop, with a very steady flow given the large distance between the ends. In the same period last year, commitments by growers were around 75%. The average sales for the last 5 years in the period are around 69%.
Finally, conillon sales continue to accelerate and reach 77% of the crop, with emphasis on the positions of the domestic roasted and ground industry. The flow of sales remains below the same period last year, when it was at 82% of production, and below the 5-year average for the period (75%).