Rising demand is supporting robusta coffee prices in Brazil, the world’s second-largest producer of the variety, according to a report by Cepea, a University of Sao Paulo research group.
“Advanced field works heated up trades, and the high demand for the robusta variety has been keeping quotes at high levels,” analyst Margarete Boteon wrote in the report yesterday.
Coffee consumption in Brazil was estimated to rise by 4.1 percent in 2010 to 18.9 million bags, according to data from the International Coffee Organization. Robusta exports from Brazil surged almost 14-fold in April. Shipments jumped to 318,598 bags from 22,855 bags a year earlier, data from the nation’s coffee- exporting council, known as Cecafe, showed.
The harvest is at proceeding at a “good pace” in the main producing states of Rondonia and Espirito Santo, Boteon wrote. Crop picking had been delayed by rains.
Most of the coffee available for sale is from the 2011-12 season, Cepea said in the report. “The remaining volume of the 2010-11 crop is very small.”
Robusta coffee prices climbed to a three-year high of $2,672 a metric ton on March 18. Robusta for July delivery advanced $39, or 1.6 percent, to $2,531 a ton by 11:27 a.m. on NYSE Liffe in London. The CEPEA/ESALQ Index for robusta type 6 closed at 229.31 reais ($141.91) per 60-kilogram (132 pound) bag on May 16, Boteon said.
Vietnam is the world’s largest producer of robusta beans, which are used in instant coffee.
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