Slow Trading Anticipated in Brazil's Coffee Market
Slow Trading is Expected As Coffee Prices Rising
The Brazilian coffee market is projected to experience slow trading today, with limited deals expected despite price increases. Higher benchmark prices for Arabica on the New York Stock Exchange and Robusta in London, coupled with the weakening Brazilian real against the U.S. dollar, have not been enough to draw producers into active trading. Most farmers are holding back, engaging only in selective transactions.Regional Price Gains in Brazil’s Coffee Market
On November 25, coffee prices rose across Brazil, supported by stronger global benchmarks. High-quality Arabica coffee reached approximately $0,55 per kg in several regions, reflecting robust demand.Key regional price movements include:
- Minas Gerais (Good Quality Arabica, 15% Picking):
- R$1,980.00–R$2,000.00 per bag (approximately $0,53–$0.55 per kg), up from R$1,940.00–R$1,945.00.
- Minas Gerais Savannah (Hard Quality Arabica, 15% Picking):
- R$2,000.00–R$2,010.00 per bag (around $0,55 per kg), compared to R$1,960.00–R$1,965.00 last week.
- Zona da Mata (Arabica "Rio" Type 7, 20% Harvest):
- R$1,600.00–R$1,610.00 per bag (approximately $0,43 per kg), up from R$1,580.00–R$1,600.00.
- EspÃrito Santo (Conilon Type 7):
- R$1,655.00–R$1,660.00 per bag (around $0,45 per kg), up from R$1,610.00–R$1,615.00.
- 7/8 Conilon: R$1,650.00–R$1,655.00 per bag (approximately $0,45 per kg), up from R$1,605.00–R$1,610.00.
Brazilian Coffee Exports Surge in November 2024
According to the Secretariat of Foreign Trade (Secex), Brazil’s coffee exports for November 2024 (spanning 14 business days) totaled 3,641,888 bags (60 kg each), with revenues of US$1.042 billion.This reflects a daily average of:
- 260,135 bags exported,
- US$74.466 million in revenue, and
- An average price of $286.26 per bag (around $4,77 per kg).
- Daily Revenue: Increased by 102.4%, rising from $36.789 million to $74.466 million.
- Daily Volume: Up by 33%, climbing from 195,589 bags to 260,135 bags.
Conclusion: Coffee Market Balances Strong Exports and Slower Trading
Brazil’s coffee market shows contrasting trends: robust export growth paired with subdued domestic trading activity. While higher global prices for Arabica and Robusta support regional price gains, producers remain cautious, waiting for further market opportunities. Meanwhile, the surge in export revenue and volumes underlines Brazil’s strength as a global coffee supplier.Click here to reach our trading platfrom CMBroker
