Firmer physical market, but very short of business
The physical market has improved price levels, but business is still very short. Demand remains steady and selective for quality, given the rising interest in better cups, especially the finest. Growers maintain a defensive posture, well capitalized and with little coffee available. In this sense, buy and sell prices remain very distant, which hinders business. Movements are limited to sporadic lots, guided by the need for cash flow from growers or in view of urgent need by some exporters.
The best cups are indicated in the physicals at BRL 510 a bag in the south of Minas, reaching BRL 515 in Mogiana region. Cerrado fine coffee ranges from BRL 540 to 545, depending on description. Forward prices for the new crop range from BRL 510 to 520 for September 2020 and from BRL 525 to 540 for September 2021 in the south and Cerrado of Minas and in the region of Mogiana, in São Paulo, depending on description. Albeit below last year’s prices, at least they are better than a few weeks ago.