The coffee harvest in Brazil is also coming to an end for arabica. Now producers focus on drying and processing coffee. Physical availability is still low in cooperatives and trading regions, partly due to crop failure.
The monitoring of SAFRAS indicates that until August 30, Brazil harvested 98% of the 22/23 coffee crop, which corresponds to an advance of only 3% over the week earlier. Work is in line with the same time last year and the 5-year average for the period.
The arabica harvest accelerated at the end and reached 97% of production, exceeding the same period last year, when it was 95% complete, and in line with the average of the last 5 years. The conillon harvest was finished a week ago.
The internal physical market follows external gains. Growers remain on the defensive, awaiting higher prices and assessing the size of Brazil’s 2022 crop. The rise in prices helped to unlock some pending positions, but the commercial flow remains concentrated in small, isolated lots, with producers focused only on covering more immediate needs. Good cup in the south of Minas Gerais is bidded around BRL 1,320 a bag in the physicals. Fine cup in Cerrado and Mogiana is bidded at BRL 1,360 a bag, with fine cherry reaching BRL 1,440 a bag. Buyers have given preference to certified coffees. Rio cup is trading around BRL 1,090, with 20% of defects, in the Matas de Minas region. Conillon 7/8 in Colatina remains at BRL 740 a bag.