SAO PAULO: Brazil exported 2.89 million 60-kg bags of green coffee in January, down 8% from the same month a year ago, exporters association Cecafe said on Tuesday in a monthly report.

Arabica coffee exports fell 9.3% to 2.65 million bags, while robusta coffee shipments increased by 7.9% to 241,534 bags, the association said, without giving a reason for the overall reduction of shipments.

January exports from Brazil, the world’s top grower and exporter, were also smaller than in December and the lowest monthly volume since July.

Traders have been reporting slow activity in the Brazilian cash market, mainly because growers already sold a lot in a year of a record crop. Shipments in October, November and December all exceeded the high level of 4 million bags per month.

“The physical market is on a slow pace in Brazil. Producers have had a good revenue in the last months, due to stable and moderately high future prices with weakening currency, and thus hold a strong position in their ask prices,” coffee trader Comexim said in a note on Tuesday.

“In parallel, interest rates in Brazil are fairly uninteresting, with the Selic (base interest rate) at 1.9% per year. Holding coffee seems to promise better earnings,” Comexim added.

The United States was the main destination for Brazilian coffee in January with 22% of total shipments, followed by Germany, Belgium, Italy and Japan.—Reuters