Current frame of coffee is unsustainable, says Carvalhaes

Product loses international market price and also falls in Brazil
by Globo Rural Online

(Affected by the appreciation of the dollar, the coffee had another week of fall - Photo: Thinkstock)

The coffee had a week of devaluation in the international market. From Monday (19/08) to Friday (23/8), the contract of Arabica for September fell $ 1.19 to $ 1.13 per pound. The December contract, the most actively traded, dropped from $ 1.22 to $ 1.17.

"A real devaluation led to further declines in futures markets", said the Office for Carvalhaes market report released weekly. "Speculators and buyers looking to take ownership of the real devaluation and some exporters by reducing their prices in dollars to try to win new sales."

According Carvalhaes current drive market is transferring income of coffee farmers in Brazil to the roasters abroad. "The Brazilian producer, one side gets every day less real for its production and the other watching their costs rise sharply. The situation is unsustainable. "

In the domestic market, between the second and Friday, the indicator Cepea / Esalq from R $ 289.76 to R $ 281.61 per bag of 60 kilos. In August, the devaluation of the product is 1.45%, according to Cepea.

The National Coffee Council reinforces the concern about the current scenario of coffee. According to the CNC, the high dollar here in Brazil is not compensating for the drop in the price of the product while pressing costs.

"This situation is very worrying, as it implies greater imbalance between revenues and expenditures, as the Brazilian coffee is dependent on imported fertilizers and pesticides, whose prices tend to rise with the weaker real," evaluated the CNC in a statement this week .

Funcafé

Eight banks have signed contracts during the week for the release of funds from the Economy Defense Fund (Funcafé). According to the CNC, until Friday (23/8) had already been released R $ 957.6 million from U.S. $ 3.16 billion authorized for transfer in the harvest in 2013.

"As these resources are released to financial agents for the subsequent decision by the producers, we can avoid an excess of immediate supply of coffee. This is a way for the grower, to achieve their marketing order ", argues the National Coffee

U.S. $ 1.00 = R $ 2.35

Source: Globo Rural magazine