Arabica Coffee Futures Market Ends Week with Sharp Devaluation

The arabica coffee futures market ended the week with a sharp devaluation in prices on the London and New York terminals, reflecting continued uncertainty about product supply and fund movements. The September/24 contracts fell by 845 points, closing at 224.90 cents/lb, while the December/24, March/25, and May/25 contracts also recorded significant declines. In London, robusta also showed substantial declines, with the September/24 contract dropping by $166 per ton, ending at $4128 per ton. These movements indicate a "nervous" and highly volatile market.

In Brazil, the harvest work is progressing without major issues, and this progress was one of the main factors putting pressure on prices this Friday. According to the consultancy Safras & Mercado, the 2024/25 coffee harvest in Brazil is 29% complete as of June 4, surpassing both last year's percentage and the five-year average. This acceleration in the harvest suggests that supply might be more robust than expected, contributing to the devaluation of prices in international markets.

In the Brazilian physical market, the main trading areas also recorded devaluations. In Guaxupé/MG, the type 6 hard drink saw a drop of 2.58%, while in Machado/MG, the decrease was 5.71%. Prices also fell in Campos Gerais/MG and Franca/SP. The peeled cherry type followed the same downward trend, with drops of 1.74% in Guaxupé/MG and 2.46% in Campos Gerais/MG. These movements reflect the pressure of a harvest that is progressing without major interruptions, alleviating some of the previous concerns about supply, but also highlighting the complex dynamics of a market that remains sensitive to short-term changes in supply and demand.

Source: Notícias Agrícolas