Arabica Coffee Hits New Record, Marking 12 Consecutive Days of Historic Gains in NY

The coffee market maintained its strong upward trend this Thursday (06), with arabica reaching a new record in nearby futures and completing twelve consecutive sessions of historic gains in New York. According to Luiz Fernando dos Reis, commercial superintendent at Cooxupé, the current scenario is the result of a combination of factors, including climate issues, logistical difficulties, and a strategic miscalculation by the industry, which failed to secure sufficient stocks to meet growing demand. With exchange-monitored warehouses operating at their lowest levels since November, Bloomberg reports that this is the longest rally since 1980, reflecting ongoing concerns about global supply.

While arabica sustained its historic rally, robusta experienced a more unstable movement, reversing early gains after Vietnam reported a 6.3% increase in its January exports, totaling 134,000 tons. This surge in Vietnamese supply pressured robusta prices, leading to slight fluctuations in futures contracts. The March/25 contract closed with a slight decline of $10 per ton, while the July and September contracts posted small gains. The contrasting behavior between the two varieties highlights the more pronounced scarcity in the arabica market compared to robusta.

In the domestic market, prices followed arabica’s upward trend, but trading volume remained low due to limited available supply. The Carvalhaes Office highlighted strong buyer interest, both for export and domestic consumption, but with few lots being offered by producers. Among key producing regions, Poços de Caldas/MG stood out with a 3.17% increase in arabica type 6, while Franca/SP recorded a 1.85% rise. The peeled cherry variety also saw gains, with Poços de Caldas/MG leading at R$ 2,730.00 per bag. Producers’ reluctance to sell large volumes suggests that the market may continue to see firm prices in the short term. Fonte: Noticias Agrícolas Mercado do café: Nesta 5ª feira (06) arábica registra a 12ª sessão... - Notícias Agrícolas