The price of coffee in Brazil drops more than 10% in one week of September

The second half of September was marked by drops in coffee prices in Brazil. According to data from Cepea, the pressure came from the expectation of more significant rains in the producing regions, from taking profits and from the liquidation of buying positions on the New York Stock Exchange (ICE Futures), after weeks of strong appreciation. In addition, the possible removal of tariffs by the United States on Brazilian coffee also contributed to the retraction. According to the researchers, despite the sharp drop, prices still remain at historically high levels. This movement is explained by the restricted supply, low stocks, and the surcharge in force on Brazilian coffee in the North American market. These factors limit a more intense devaluation in the short term. Between September 15 and 22, the CEPEA/ESALQ Indicator for arabica type 6, hard drink for better, posted in São Paulo, accumulated a drop of 10.2%, ending at R$ 2,133.08 per 60-kilo bag on the 22nd. In the same ...