Vaivém das Commodities: Coffee with better quality already accounts for 22% of export earnings

Brazilian exports of differentiated coffees, the best quality ones, already reach 22% of the total value of the revenues obtained by the country.

From January to July, Brazil received US$ 5.23 billion from foreign sales of green, soluble and roasted and ground coffee. Revenues from the differentiated product totaled US$ 1.13 billion.

In volume, exports reached 3.91 million bags, up from the same period in 2020 and 2021, but below the 4.49 million bags from January to July 2019.

Those who bet on the best quality coffee have a price reward. According to data from Cecafé (Coffee Exporters Council of Brazil), the common product was traded at US$ 227, but the differentiated product reached US$ 289.

Practically all the differentiated coffee sold by the country is of the Arabica type, whose volume totaled 3.86 million bags in the first seven months.

Coffee prices, due to an imbalance between supply and demand, remain high. One of the reasons for this increase is Brazil’s own participation in the international market.

The world’s largest producer and exporter of coffee, the country sold 2.48 million bags in July, 15% less than in the same month of 2021. The volume is the lowest in four years in this period.

For analysts at consultancy StoneX, the constant drops in certified coffee stocks and the uncertainties about the Brazilian harvest keep prices at the level of US$ 2 per pound.

This year, inventories of certified coffee dropped to just 700,000 bags, 54% below the 1.5 million bags of the previous year. As a result, they are at their lowest level since 1999, according to StoneX analysts.

The domestic price of a bag of coffee dropped to R$ 1,264 this Tuesday (9), according to Cepea (Center for Advanced Studies in Applied Economics). In the month, the product has indented 2.8%.

Soy Brazil is expected to process 48.6 million tons this year, increasing the volume of soybean meal and oil produced, according to Abiove (Brazilian Association of Vegetable Oil Industries).

exports The greater volume in processing will give the country a better condition for exports of bran and oil. In the case of bran, the volume exported will be 18.6 million tons, with revenues of US$ 9.3 billion.

Corn S&P Global Commodity forecasts a national crop of 115.5 million tons of corn. Of this volume, 90.9 million will be in the off-season.

corn 2 For Argentina, the agency estimates a production of 52 million tons, 1.5 million more than previously forecast.

corn 3 European Union production was revised up to 58 million tonnes, 2 million below the previously estimated volume. High temperatures affect production, which, if confirmed, will be 12.5 million lower than in 2021.