Robusta coffee has, for the first time, become more expensive in Brazil than arabica coffee, as weak rainfall levels provoke fears that the country will in 2017 suffer a third successive drought-damaged harvest.
Robusta coffee prices in Espirito Santo, Brazil’s top producing state for the variety, rose 1.2% on Thursday to hit R$518.58 a bag, according to research institute Cepea.
Besides being a record high robusta price, on data going back to 2001, the increase also took robusta prices above those of arabica beans in Brazil for the first time.Arabica coffee – generally considered of higher quality, and which forms the basis of more expensive roaster offerings – typically enjoys a strong premium which averaged nearly R$130 a bag in Brazil last year, on equivalent to about 30%.
Robusta prices, which as measured by Cepea are up 37% this year, have been boosted of late by further concerns over the prolonged dryness in Espirito Santo, which threatens to leave the state in 2017 reporting a third successive drought-depleted harvest.
Powered by Commodity Insights