Brazilian coffee farmers sold 78% of the current crop (2022/23, July-June) by 15 February, a slower selling pace than seen at this time last year (86%) and also below the long-term average (81%) for the period, consultancy Safras & Mercado has said in a report.
Safras coffee analyst Gil Barabach said in the report that farmers remain cautious about committing to larger sales even as benchmark arabica coffee prices improved recently.
Arabica futures KCc2 rose to a three-month high on Friday 17 February, as falling stocks at ICE exchange and in some importing countries boost prices.
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"The farmer still remembers those high prices from late last year, before the sharp fall. Even with the recent improvement, he is not yet willing to sell," said Barabach, adding that buyers are also reluctant to pay the higher price asked.
Safras also projected forward sales for the new crop (2023/24), indicating that 17% of it has been sold, also below the amount of sales seen at this time last year of 27%.
Read More: Arabica Coffee Prices To Drop 12% As Global Surplus Forecast
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