Physical coffee prices rose in Brazil during the week amid brisk trading and were supported by the diminishing supply of higher quality produce, brokers said, while New York futures prices soared on Friday. Trader Carvalhaes based in Brazil's main port city of Santos quoted fine cups ex-warehouse at 470-500 reais ($280.59-$299.40) per 60-kg bag, a rise of 10-20 reais from last week. Semi-washed reached up to 520 reais.
Lower quality Rio and Riado grades were also 30-50 reais more expensive than in late December, Carvalhaes data showed. "Differentials keep narrowing for all types of qualities. Even for standard good cup qualities, differentials are much tighter now," Rio de Janeiro-based brokerage Flavour Coffee said in a weekly update.
The brokerage said co-operatives in southern Minas Gerais, the heart of Brazil's coffee belt, were running out of fine cup grades and supplies of good cups were now also tighter. World top coffee grower Brazil will not start harvesting another crop until late April or May. The 'off-year' crop in the biennial cycle is expected to yield 41.9-44.7 million bags, down from 48.1 million bags harvested in 2010, according to the agriculture ministry's crop agency, Conab.
Flavour Coffee said local roasters had been more active buyers in the last week, seeking deliveries around March or April. Brazil's currency, the real, remained little changed against the dollar during the week, at around 1.67 per dollar. New York arabica coffee futures shot up to a new 13 1/2 year high in early trading on Friday before retreating shortly after, as fund buying triggered automatic buy orders, dealers said.
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