The recent appreciation in coffee prices brought movement to the Brazilian domestic physical market. Growers are more present at sales, taking advantage of the favorable moment. The price highs in both NY and London, combined with the dollar above BRL 5.00, encouraged sellers and provided greater liquidity for negotiations. Many growers are speeding up their sales to ensure cash flow during the harvest.
According to a SAFRAS survey, until April 9, growers committed 89% of the 23/24 crop (Jul/Jun). This represents an increase of 5% compared to the previous month and slightly exceeds the same period last year, when 87% of production had been sold. Furthermore, it is above the five-year average (2019 and 2023), which records a commercialization of 88% of the crop for this period.
Arabica sales in Brazil reached 86% of production, signaling a much more active grower in the market. These numbers already exceed those of the same period last year, when sales represented 85% of the crop, and are in line with the five-year average. Rising sales in the Cerrado, and Matas and south of Minas Gerais stand out, especially among cooperatives.
The commercialization of conillon continues at a rapid pace, driven by strong external interest. The price above BRL 1,000 a bag has stimulated sales, reducing availability and leaving little coffee in the hands of growers in this transition period between the 2023 and 2024 crops in Brazil. Conillon sales reached 96% of production, a number higher than the same period last year (91%) and above the five-year average (92%).