Sales of Brazil’s 2019 crop again gained intensity in late October and early November. Growers took advantage of price highs to accelerate business, boosting sales. The ICE correction and then the dollar high supported the internal rally. Although growers still prefer to negotiate the weakest lots, the rise in prices eventually increased the supply of the best cups. Hard cup with 15% of defects, trading at BRL 400 a bag less than a month ago, exchange hands at BRL 480 and is currently ranging between BRL 465 and 470 per bag . Quite a significant gain, which ended up moving sellers.
SAFRAS survey indicates that until November 11 the commitment of the 19/20 season by growers was at 62% of production. Selling flow is higher compared to the same period last year, when sales reached 59%, but in line with the 5-year average for the period.
Highlight on Arabica, with commercialization reaching 62% of the crop. Sales of these coffees are well above the same time last year (56%) and slightly higher than the average for the period (61%). On the other hand, conillon sales are only at 63% of the crop, well below the same period last year (69%) and also below the 5-year average for the period (67%).
New crop sales also gained momentum as prices skyrocketed. The best cups were trading around BRL 500 per bag for delivery and payment in Sep/20. A much more attractive price than a few weeks ago, which encourages forward business.