In the south of Minas Gerais, the average price for good cup was around BRL 813 per bag until August 24. The market has shown some reaction in recent days, with good cup ranging from BRL 815 to 820 a bag. It indeed remains below the deflated 5-year average for the period (BRL 853) and far from the average price reached in 2022, when it changed hands in August at around BRL 1,200 a bag.
In general terms, the price of good cup in the south of Minas Gerais is in line with the seasonal movement of the market, remaining slightly below the 5-year average. The market is looking for a new balance, after the strong negative adjustments seen for the last few months. Although timid, the reaction is an important sign of strength.
Fine cup in the Cerrado and Mogiana reached an average level, in this part of August, of around BRL 860 a bag, also showing a reaction in the last few days. It mirrors the behavior of good cup, overcoming the bottleneck with the arrival of Brazil’s 2023 crop. There is room for relative appreciation of finer cups and cherry coffees, given the lower supply of Colombian milds. However, it is good to be aware of windows of opportunity, since in the last quarter of the year the new production cycle in Colombia begins.
Rio coffee with 20% of defects in the Matas de Minas region is sustained above the deflated 5-year average. The tight physical supply and the increased interest from the domestic roast and ground industry ensure this good performance. The price of Rio cup is around BRL 728 per bag in the partial average of August. Also signaling a timid reaction in this final stretch of August.
The average price of conillon 7/8 in Colatina, Espírito Santo, is around BRL 647 per bag, but unlike arabica, with prices losing a little strength at the end of August. The market is moving sideways, finding support in the robusta gains in London and the buying interest of the local roasted and ground industry. However, the increasing competition with arabica’s weaker cups ended up reducing the strength of conillon, which seeks a better alignment with the 5-year average to remain attractive to domestic buyers.
