Porto Alegre, November 04, 2021 - The domestic physical market continues to set nominal highs for arabica. The good performance on ICE US and the strong dollar, however volatile it may be, guarantee support for domestic physical coffee prices. The physical market remains very difficult for buyers, given the restraint of sellers. Often, to move growers, buyers need to be more aggressive, which results in deals characterized by low liquidity and erratic price movements.
Conillon already shows a new reaction, albeit still far from recent highs. Growers are also quiet and only show up for the game to cover needs. The difference here is that big domestic industries have already made good purchases of that description. And this limits the flow of purchases to small and medium roasters, which has a clear repercussion on business liquidity and has already had a negative effect on the conillon price curve.
