Analysis: Coffee Market Dynamics and Brazil's Expected Production Surge

The robusta coffee futures closed up 2.1%, rising $70 to $3,385 per ton on May's contracts, driven by limited supply from Vietnam, the largest robusta producer.

Domestic prices in Vietnam are on track to hit a historic milestone of 100,000 Vietnamese dong per kilogram as supply remains scarce and demand stays strong.

Expectations point to Brazil registering its third consecutive annual increase in coffee production this year, a rare sequence observed only seven times in 144 years of coffee production. This phenomenon, coupled with global supply and demand dynamics, is shaping the coffee market and influencing price movements.

Source: Investing.com