Good flowering puts pressure on Arabica coffee values

External and internal prices of Arabica coffee registered a sharp drop in the first half of October, influenced by the expectation of high supply after the opening of the main flowering period in important producing regions in Brazil. Another factor that put pressure on prices was the rain in recent days, which should help with the setting of flowers. Thus, from September 30th to October 15th, the CEPEA/ESALQ Indicator for Arabica coffee type 6 hard drink for better, placed in the capital of São Paulo, recorded a drop of 23,55 Reais per 60 kg bag (or 5,3%) , going from R$438,49/sc to R$414,94/sc. 

For Robusta, according to Cepea collaborators, the rains recorded at the end of September also favored the opening of another flowering in Espírito Santo and Rondônia, in addition to helping to set previously opened flowers. However, this scenario put pressure on external and internal prices at the beginning of October. Even so, the devaluation of the variety was less significant than that of arabica, especially due to the restricted supply in Vietnam – which mitigated the fall in futures – and the greater buying interest in Brazil. From September 30th to October 15th, the CEPEA/ESALQ Indicator type 6 sieve 13 showed a drop of 6,36 Reais per 60 kg bag (or 2,1%).