Physical coffee market in Brazil reacts to ICE, but trading remains thin

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    Porto Alegre, September 22th, 2022 – The physical coffee market in Brazil seeks some balance in the inverse behavior of the dollar and ICE and walks on the sidelines, trying to consolidate a level of performance. Concerns about sales in advance deliveries in September and the lower Brazil’s 2022 output, associated with financial volatility and economic uncertainties, explain the caution in the physical market. Good cup in the south of Minas Gerais tries a new approach to the level of BRL 1,300, with bids around BRL 1,280 per 60-kg bag in the physicals. Sellers are still distant, asking BRL 1,310 a bag. The spread between the ends and the concentration on deliveries ends up emptying negotiations.

Positions with future crops continue not to attract the interest of growers. The price is practically the same as in the physical market, which justifies the lack of sellers. The confirmation of rains and the appearance of blossoming in Brazil’s 2023 crop may help to break this resistance a little, with some progress in barter operations and future commitments.

    Fine cup is bidded at BRL 1,300 a bag in Cerrado and Mogiana. Offers are still distant, between BRL 1,370 and 1,390 a bag, already below the old trigger of BRL 1,400 a bag. Fine cherry coffee ranges from BRL 1380 to 1,420 per bag. Rio cup rose to BRL 1,070 a bag for a lot with 20% of defects in the region of Matas de Minas. Conillon 7/8 in Colatina is maintained at BRL 735 a bag.

   Fábio Rübenich (fabio@safras.com.br) – Agência SAFRAS

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