Arabica Coffee Futures Surge Amid Dry Weather and Stronger Real

Arabica coffee futures saw strong gains on the New York Stock Exchange this Wednesday (19), driven mainly by adverse weather conditions in Brazil and the appreciation of the real against the dollar. The nearest contracts closed the day with significant increases, reflecting concerns over the lack of rainfall in Minas Gerais, the country’s main coffee-producing region. Meteorological reports indicated precipitation levels below the historical average, raising uncertainties about production and supporting price increases.

In the robusta coffee market, prices also advanced on the London Exchange, albeit with more moderate gains. The rise in ICE-monitored stocks limited further increases, counterbalancing the sharp appreciation observed in arabica. Nevertheless, the overall market trend remains bullish, with global supply still tight and consistent demand for high-quality coffees.

In Brazil, the domestic market followed the upward trend in international contracts, with rising prices in key producing regions. Areas such as Varginha, Campos Gerais, and Franca recorded significant price increases for arabica coffee, both for type 6/7 and pulped natural varieties. This scenario reflects producers holding back sales, anticipating even higher prices amid climate and exchange rate uncertainties. Fonte: Noticias Agrícolas De olho na safra brasileira, preços futuros do café encerraram a sessão... - Notícias Agrícolas