The end of the harvest increased the available supply and facilitated business. Moreover, high prices also contributed to the good performance. Between late August and early September, supported by the rally on ICE and high dollar, good cup exchanged hands at BRL 605 to 610 a bag in the south of Minas and Mogiana, repeating the level reached in April, before the beginning of the crop and when the dollar flirted with the level of BRL 6.00. With the best coffees around BRL 600 a bag, it is natural that there is a greater interest in sales, which boosted the business flow. It is worth noting that cherry coffee exchanged hands above BRL 700 a bag. And the demand for certified batches and fine coffees has also sharply grown, offsetting the shortage of milds cups.
Thus, the flow of business remained very intense, which resulted in a strong volume committed by growers. The sales of weaker cups were also active, but a less intense pace. And it was not more aggressive due to the logistical bottleneck, with crowded warehouses and lack of available trucks, which has led trading companies to hold their purchases a little or postpone deliveries.
In other words, the pace of business remains very fast. The monthly survey by SAFRAS indicates that until September 8, the commitment of the 20/21 crop by growers reached 60% of production. A very fast selling flow compared to the same period last year, when sales reached 47% of the expected output, also well above the 5-year average for the period (45%). Arabica stands out with 63% of production negotiated (including forward sales, exchanges, and negotiations in the physicals). In the same period last year, sales hit 47%, and the average for the last 5 years is 43%.
Conillon sales reach 55% of production, against 48% in the same period last year and 52% on the 5-year average. The high dollar keeps stimulating exports and guarantees price support, which explains the good sales flow.