The internal physical market reacted, following the recovery of coffee prices on ICE US and the stronger dollar. Higher prices associated with the return of rain and the expectation of the blossoming ended up bringing a few more sellers to the market, especially for the last few days. And that made business a little more dynamic.
Good cup in the south of Minas Gerais advances above the level of BRL 1,300, being bidded at BRL 1,310 for a 60-kg bag in the physicals. Sellers are still distant, talking about BRL 1,340 a bag. The short supply and the appreciation of the physical market favor the strategy of lengthening positions. However, the return of rain and blossoming can bring negative pressure to coffee prices in New York and interfere with the price curve of the physical market. And this has led to slight flexibility in the posture of sellers.
Fine cup is bidded around BRL 1,340 a bag in Cerrado and Mogiana. The seller’s request is still far between BRL 1,410 a bag. Fine cherry coffee ranges from BRL 1390 to 1,430 per bag.
Rio cup follows the rise of better cup coffees (group 1) and is around BRL 1,090 a bag for a lot with 20% of defects in the region of Matas de Minas. Conillon 7/8 in Colatina remained stable at BRL 735 per bag. The indication for arabica hard cup with 600 defects is between BRL 1,250 and 1,290 a bag. The price difference between arabica and conillon explains the preference of the domestic roasted and ground industry for the latter.