Brazil: Arabica coffee prices plummet in June, while rice prices show reaction

Published 2023년 7월 5일

Tridge summary

In June, domestic prices for arabica coffee dropped significantly due to the advance of the harvest in Brazil, expectations of good production in the next harvest, and favorable weather conditions. Similarly, prices for robusta coffee started high but then began to decline due to pressure from buyers and external factors. Paddy rice prices reacted positively in the last week of June, driven by the slight increase in the dollar and increased interest in rice exports. Domestic cotton lint prices also fell in June due to lower prices for plume in Asia and the devaluation of the dollar.

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Original content

Prices on the domestic market for arabica coffee fell sharply in June. The CEPEA/ESALQ Indicator for arabica type 6, posted in the city of São Paulo, closed at R$ 825.59/60 kg bag on the 30th, a significant drop of 16.70% (or R$ 165.46 per bag) in the accumulated of the month. According to CEPEA researchers, the pressure came from the advance of the variety harvest in Brazil, from the good expectations of production in the 2023/24 harvest and from the very favorable weather conditions for work in the coffee plantations. For Robusta, prices started June on a high and remained firm throughout the first half of the month, sustained by the consensus among agents in relation to the drop in production of the variety. However, with pressure from buyers and external declines, prices began to retreat. In the month, the CEPEA/ESALQ Robusta Coffee Indicator fell 8%, closing at R$ 644.31 for a 60 kg bag on the 30th. Rice The prices of paddy rice reacted in the last week of June, ending the ...

Source: SNA