Appreciation Scenario: Arabica Coffee on the Rise and Concerns about Supply

The future market of Arabica coffee showed an upward trend in trading this Tuesday (9), with major contracts on the New York Stock Exchange registering significant gains. Contracts for July, September, and December 2024 demonstrated increases in points, reflecting optimistic demand and ongoing concerns about the global supply of the product. Meanwhile, in London, the robusta coffee market experienced some fluctuations, with slight decreases in prices for some contracts and increases for others, highlighting the volatility and sensitivity of the international market.

Support in the coffee market continues to be driven by concern about global supply, with traders attentive to crop conditions in Brazil, especially as producers prepare for the upcoming harvest. Uncertainty about the supply of robusta also persists, with Vietnam remaining in the spotlight. While prices remained stable on a specific day, concern about supply continues to be a key factor influencing market participants' decisions.

In Brazil, the physical coffee market followed this trend and ended with gains in several trading locations across the country. Prices for type 6 hard bean coffee and pulped natural coffee increased in different regions, indicating a healthy demand and reflecting producers' and buyers' confidence in the domestic market. This appreciation can be interpreted as a reflection of market participants' positive outlook on the quality and availability of Brazilian coffee.

Source: Notícias Agrícolas