In the Brazilian physical market, coffee accumulated sharp losses in October, following the ICE US lows. Good cup in the south of Minas Gerais with 15% of defects (type 6) dropped 22% in October. And the fall in the dollar, after the elections, reinforces the bearish signal, which led coffee from the south of Minas Gerais to lose the level of BRL 1,000 and be indicated at BRL 990 a bag at the beginning of November.
The monitoring of the deflated coffee price in the south of Minas Gerais reinforces the signs of a downturn, with the price falling below the same period last year and converging towards the historical five-year average, which confirms the behavior change and requires greater attention on the part of growers in their commercial management in the physicals and, mainly, of future crop positions.
Fine cup in Cerrado and Mogiana is pegged at BRL 1,020 and already flirts with the psychological level of BRL 1,000 a bag. This description has accumulated losses of 23% since the end of September. Rio coffee with 20% of defects from Matas de Minas is currently around BRL 780 per bag, down 28% from the end of September.
Conillon type 7/8 in Colatina, Espírito Santo, is indicated in early November at BRL 565 per bag, down 23% from September 30. Hard arabica with 600 defects for domestic consumption fell 22% in the same period and is indicated at BRL 980 a bag in Minas Gerais and São Paulo, which keeps conillon much more attractive to the local industry.