Adjustments in International Markets and Concerns about Global Supply

The week began with price adjustments in the coffee markets worldwide, with the New York terminal registering a decline for Arabica while London saw a technical advance. Futures contracts for May, July, September, and December 2024 experienced devaluations, reflecting negative adjustments in the market. This correction came in response to new data from the International Coffee Organization (ICO), which revealed an increase in global coffee exports in February, despite ongoing concerns about supply.

While price adjustments were influenced by the new ICO data, concerns about global coffee supply persist, providing support for prices. Attention is particularly focused on Vietnam, which has been participating less in the market in recent weeks, and on the weather in Brazil, which is preparing for the start of the 2024 harvest. Somar Meteorologia reported that the Minas Gerais region in Brazil received only 12% of its historical average rainfall last week, highlighting the climatic challenges that could affect production.

Meanwhile, on the London Stock Exchange, futures contracts for robusta coffee saw slight positive adjustments. Prices for May, July, September, and November 2024 showed variations, with some increases and decreases, reflecting conditions in the international market. In Brazil, the physical coffee market ended with adjustments in some of the main trading places, with price changes for type 6 hard-bean coffee and peeled cherry type, highlighting volatility in the domestic market.

Source: Notícias Agrícolas