Internal physical coffee market slows down the high

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The internal physical market is in slight negative adjustment due to the ups and downs of the ICE and dollar. The growers’ restraint ends up forcing a slight negative detachment from the external reference, notably for the best coffee cups. Good cup in the south of Minas Gerais is nominally pegged at BRL 1,315 per bag in the physicals. In real terms, with prices deflated by the IGP-M index, this description shows support and shows a slight appreciation. The current purchasing power of a bag of coffee (translated by the deflation of the price series) remains above the same period of the year and well above the 5-year average (BRL 831.65), which reinforces the good moment for sellers.

Fine cup is bidded between BRL 1,350 and BRL 1,355 a bag in Cerrado and Mogiana, respectively. Offers are above BRL 1,400 per bag. Fine cherry is indicated between BRL 1,420 and 1,460 a bag, between bids and offers. There is a greater interest in certified coffees. Rio cup is around BRL 1,090 to 1,100 with 20% of defects in the Matas de Minas region. Conillon 7/8 in Colatina rose to BRL 745 a bag and, despite being firmer, remains quite competitive against arabica with 600 defects, which ranges from BRL 1,270 to 1,320 a bag, depending on the buying interest. This difference justifies the greater interest of the roasted and ground industry in conillon.