Adjustments in the Arabica Coffee Market Amidst Climatic Uncertainties and Strong Exports

The Arabica coffee futures market experienced a day of price adjustments, reflecting both previous gains and uncertainties regarding the weather in Brazil. Following a significant increase driven by forecasts of intense cold, contracts for September/24, December/24, March/25, and May/25 saw notable declines. The drop in prices, with September/24 trading at 245.30 cents/lbp, indicates that the market is in a correction phase, adjusting expectations concerning the climate's impact and the dynamics of supply and demand.

In addition to climate concerns, price pressure also stemmed from positive export data released by Secex, suggesting that Brazil's performance in the international market remains strong. This information may have contributed to the moderation in prices, even with the potential for frost in southern Minas Gerais. With the official Cecafé figures expected soon, there is an anticipation that Brazil will maintain its strong export performance, which could influence prices in the near future.

In the Brazilian physical market, the adjustment trend was also observed, with price drops in key trading regions. The depreciation of type 6 hard drink and pulped natural coffees in areas like Guaxupé, Poços de Caldas, and Campos Gerais reflects the market's caution amid the uncertain climate scenario and fluctuations in futures markets. This behavior indicates that market players are closely monitoring climate developments and export trends, adjusting prices as new information becomes available.

Source: Notícias Agrícolas