Feb. 3 (Bloomberg) -- Coffee prices in Brazil, the world’s largest producer, tumbled this week as growers sold after holding onto beans in a bid to boost prices, according to brokers Flavour Coffee and Cazarini Trading Co.
The price of fine cup arabica beans traded below 500 reais ($291) a 60-kilogram (132-pound) bag for the first time since August last year, data from Rio de Janeiro-based Flavour Coffee showed. The price of conillons, as Brazilian robusta beans are known, “collapsed” to about 250 reais a bag in the past two weeks from 300 reais, Flavour said.
Producers and cooperatives had been holding beans, awaiting better prices, according to Flavour. Growers “could not afford to maintain the same attitude,” the broker said yesterday in an e-mailed report. “Prices quickly reached 480 reais.”
Local prices followed international rates lower. Arabica coffee traded on ICE Futures U.S. in New York touched a 13-month low of $2.1095 yesterday on speculation global supplies will improve with large crops in Brazil and Vietnam.
“A dramatic and nervous week,” Thiago Cazarini, a broker at Varginha, Brazil-based Cazarini Trading Co., wrote in a report e-mailed yesterday. “Prices dropped in the internal market, with futures coming much lower.”
Arabica coffee for March delivery rose 0.7 percent to $2.1705 a pound by 5:50 a.m. on ICE Futures U.S. in New York. Robusta coffee for March delivery advanced 1.8 percent to $1,833 a metric ton on NYSE Liffe in London.
Arabica beans are grown mainly in Latin America and favoured for specialty drinks such as those made by Starbucks Corp. Robusta coffee is harvested mainly in Asia and parts of Africa and is used to make instant drinks and espresso.
--Editor: John Deane
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To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.