Arabica coffee indicator completes 12 months of consecutive highs

Arabica coffee prices rose sharply in Brazil in October, completing 12 months of consecutive monthly advances. At the end of the month In the past, the CEPEA/ESALQ Indicator for Arabica type 6, placed in the capital of São Paulo, closed at R$ 1.256,27/bag of 60 kg, a significant increase of 119,33 Reais/bag (or 10,5%) compared to the end of September.

On October 26th, specifically, the Indicator reached R$ 1.270,07, nominal record of the Cepea historical series, started in 1996. In real terms, this was the highest level since May 3, 2011 (the values ​​were deflated by the IGP-DI of September/21).

According to Cepea researchers, the strong increase was linked to appreciation of variety futures and the relative retraction of spot sellers national. In the foreign market, prices were driven by concerns with the global grain supply.