Sales of Brazil’s 2023 coffee crop hit 23% of potential production

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The selling place of the new Brazilian crop has slightly improved with the arrival of conillon and higher prices. The SAFRAS survey pointed to commitments by growers at 23% of the potential of Brazil’s 2023 crop until April 17. Despite this improvement, the sales flow remains far below the same period last year, when sales hit 31%, but practically in line with the sales of the four-year average for the period, which points to 24%.

The arabica sales have been revised to 25%, already adjusted to the review in the crop number. This percentage involves barter operations, lockings by trading companies, and the rollover of the last crop’s negotiations. In Cerrado and Mogiana, the weight of the rollovers is more significant. In the same period last year, sales amounted to 34% but from a much lower crop than the one expected this year. The sales also remain slightly below the four-year average for the period (28%).

In the case of conillon, the supply progress of new coffee, after some initial delay, and the hike in prices ended up impacting sales. The idea is that 18% of the 2023 crop of conillon are already committed by growers and involve, besides physical sales, barter operations, and forward commitments with industries. International highs brought more ground and roasted coffee industries to the market, which enhanced business. Despite a better trading place, sales remain below the same period last year (23%).

Last year was an atypical case because of strong early trading by industries and the uncertainties about supply. In comparison with the four-year average (16%), the current sales remain faster.