The difference between the prices of Arabica and Robusta coffee reaches R$100,00/bag

The difference between the prices of Arabica and Robusta coffees has grown in recent months in the Brazilian market, according to a Cepea survey. In general, the two varieties have been depreciating for much of the 2018/19 season, but the declines in Robusta have been a little more intense, widening the gap with Arabica. 

In the partial harvest (from July/18 to April 8/19), the CEPEA/ESALQ Indicator for Arabica type 6 (station in the city of SP) is 100,33 reais/bags above the CEPEA/ESALQ Indicator for Robusta type 6 (sieve 13 above). In the same period of the 2017/18 season, the difference between varieties was 84,61 reais/sc. 

The sector's expectation, according to Cepea research, is that this differential will remain stable in the coming months, given the bearish outlook for both varieties. In the case of arabica, the high quantity produced in 2018/19, the recovery of national and global stocks and the approaching harvest of the 2019/20 harvest, which should have high production for a year with a negative biennial, have been maintaining pressure on quotes. For Robusta, the prospects are also for greater production, which should result in further drops in prices.