Arabica coffee prices increase during the 2019/2020 harvest

Domestic Arabica coffee prices have increased during the 2019/20 harvest. In part of the season (from July/19 to April/20), the CEPEA/ESALQ Indicator for type 6 Arabica coffee, a hard drink for the better, placed in the capital of São Paulo, records an average of R$ 497,47/60 kg bag, increase of 9,8% (or 43,94 Reais/bag) compared to the same period of the 2018/19 harvest, in real terms (values ​​were deflated by the IGP-DI of March/20). 

It is worth remembering that, in 2018/19, prices for the variety fell sharply, influenced by record production. In this 2019/20 season, which has a negative two-year period, values ​​have recovered, supported by the restriction of supply (especially of fine coffees) and the possible reduction in transit stocks. More recently, factors resulting from the coronavirus pandemic also reinforced the upward movement in domestic Arabica prices in March and April. As for Robusta, unlike Arabica coffee, prices are lower in 2019/20. 

In the partial harvest (from July/19 to April/20), the CEPEA/ESALQ Indicator for Robusta type 6 sieve 13 shows an average of R$ 330,47/bag of 60 kg, 9% lower than the same period in 2018/ 19. After the record prices of 2016/17, Robusta has been depreciating in recent harvests, due to the recovery of Brazilian production from 2017/18, the record volume in 2019/20 and the good performance of Vietnam (the world's largest producer of the variety). ) this same season.