Prices of arabica and robusta coffee consumed in top global producerÂ Brazilâ€™s domestic market rose to records on increased demand from local roasters, researcher Cepea said.
Low-quality arabica averaged 335.23 reais ($187.19) a bag from the start of the crop in July to November, up 40 percent from a year earlier, Cepea data show. Robusta averaged 227.49 reais, up 36 percent, according to the figures. Brazilian roasters usually purchase robusta and low-quality arabica, said Cepea, a University of Sao Paulo research group.
â€œThe low supply of these coffee beans has been pushing up prices this season,â€ Cepea analyst Margarete Boteon said in a report yesterday. â€œBoth coffee types have already hit the highest values, in nominal terms.â€
Coffee usage in the country probably will rise 3.5 percent this year, according to the Brazilian Association of Coffee Industries. Demand climbed to a record 19.1 million bags last year, data from the group show. Brazil may overtake the U.S. as the worldâ€™s biggest consumer in five years, Rabobank International estimates.
Local coffee demand continues to be â€œheated,â€ Boteon said. Brazil will produce 43.1 million bags this season, according to the agriculture ministryâ€™s crop-forecasting agency. Exports may total 25 million bags, according to agents surveyed by Cepea.