Brazilian growers sold 51% of 2020/21 season
The rally on ICE and the dollar high ended up stimulating sales in the physical market. Good cup coffees exchanged hands at the peak of the market between BRL 560 and 600 a bag. The finest cups reached BRL 620 to 630 per bag. Cherry has already exchanged hands over BRL 700 a bag for certified lots. As it is not every day that coffee surges at full crop, growers took advantage to speed up negotiations.
The business pace of the 2020/21 season has been marked by a good flow in advance and staggered sales, with growers trying to take advantage of rising prices to set forward positions. The market has been very generous with sellers since the end of last year, either due to the escalation in the dollar or to some rebound on ICE coffee prices, which quite improved the life of growers.
The monthly survey by SAFRAS indicates that until August 10 the commitment of the 2020/21 season by growers reached 51% of the expected production. A very fast sales flow compared to the same period last year, when they reached 42% of production. And also well above the 5-year average for the period, when only 37% had been sold. Arabica stands out with 53% of production negotiated (between future and physical sales), against 41% in the same period last year and 36% on average. Conillon sales reach 45% of production, against 43% in the same period last year and average.