CEPEA: Brazilian arabica coffee type 6 up 7.74% month-over-month to 504.24 reais/60-kilo bag in November; robusta type 6 rises 14.23% to 290.71 reais/60-kilo bag
Andrew Rogers
PIRACICABA, Brazil
,
December 5, 2011
(press release)
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Values of robusta coffee have been registering record levels (in nominal terms) in the Brazilian market, despite the record harvest in Espírito Santo state, in 2011/12. The steady demand and refrained sellers are driving these increases. Many producers were capitalized in the period, and, consequently, they have been able to manage sales of the remaining batches. In this scenario, only small amounts have been offered in periods when quotes are considered more favorable.
Since early November, the CEPEA/ESALQ Index for the robusta coffee type 6, in the Espírito Santo state, has been registering consecutive records, in nominal terms, considering Cepea data, started in 2001. The same scenario is verified for the type 7/8 in the state. According to agents surveyed by Cepea, highs have surpassed the initial expectations. Many agents also expect prices to remain at firm levels until the end of the year. According to players, roughly 50% of the harvest of the 2011/12 season was already traded in Espírito Santo state until late November.
In the accumulated of November, the CEPEA/ESALQ Index for the robusta coffee the type 6 increased by a whopping 14.23%, and closed at 290.71 reais or 160.70 dollars per 60-kg bag on Nov. 30. The Index for type 7/8 closed at 277.57 reais or 153.43 dollars per 60-kilo bag, soaring 13.7% in the same period – both available in Espírito Santo state (origin).
In the arabica market, sellers remained refrained at the end of the month, waiting for more expressive increases. Consequently, trades continued to be sluggish. The CEPEA/ESALQ Index for arabica type 6 delivered in São Paulo (capital) closed at 504.24 reais or 278.74 dollars per 60-kilo bag on Nov. 30, upping 7.74% in the accumulated of the month.
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