Consultancy Firm Reports 64% Sale of Brazil's 2023/24 Coffee Crop

18 Nov, 2023

Consultancy Firm Reports 64% Sale of Brazil's 2023/24 Coffee Crop

In the latest update provided by Safras & Mercado, a notable consultancy firm, Brazilian coffee farmers have shown increased activity in selling their coffee produce. However, this surge in sales, albeit significant, still falls short when compared to the corresponding period of the previous year and the average sales observed over a more extended period.

As of November 13, the statistics unveiled that Brazilian producers managed to sell off 64% of their anticipated 2023/24 coffee crop. This marks a positive shift, showcasing an eight-percentage-point increase from the preceding month. Yet, it's important to note that this figure is slightly below the 65% mark achieved by the same period in 2022 and the standard five-year average, which stands at 66%.

Safras attributed this uptick in sales to the escalation in coffee prices, particularly highlighting the surge in arabica coffee futures traded on ICE. These futures soared to their highest level in almost five months, reflecting the buoyancy in the coffee market. The consultancy emphasized that the sales might have shown even more substantial growth had buyers not adopted a cautious approach, exercising restraint in their purchasing activities.

Delving deeper into the specifics, the breakdown reveals that sales of arabica coffee accounted for 60% of the projected production, slightly below the 64% long-term average. Conversely, deals for robusta coffee were estimated at 72%, exceeding the 66% five-year average.

The significance of these trends extends beyond Brazil's borders, as the country holds the prestigious title of being the world's largest coffee producer and exporter. The fluctuations and trends in Brazilian coffee sales often have reverberations throughout the global coffee market, influencing supply chains and pricing dynamics worldwide.