Arabica Coffee on the Rise and Concerns about Global Supply

In Thursday's (25) session, arabica coffee futures on the New York Stock Exchange closed higher, driven by concerns over harvests in Brazil and Vietnam. The July/24 and September/24 contracts showed solid gains, reflecting traders' confidence in the global supply of arabica coffee. Meanwhile, in London, robusta coffee futures also saw gains, with prices buoyed by concerns over tight supply from Vietnam and dry conditions in Brazil.

The domestic coffee market followed the upward trend, with prices gaining in key trading centers across the country. Both arabica and cherry type coffee saw significant increases in regions like Guaxupé/MG, Poços de Caldas/MG, and Varginha/MG. These gains reflect not only concerns about global supply but also unfavorable weather conditions in some Brazilian producing regions. The rise in domestic prices may impact producers, providing a more favorable environment for the marketing of their crops.

In summary, concerns about global supply and weather conditions continue to influence coffee markets, both internationally and domestically. Traders are monitoring news about harvests in Brazil and Vietnam, while Brazilian producers closely watch price fluctuations in the domestic market. The current scenario highlights the complexity of the coffee market and the importance of comprehensive analysis to understand trends and make informed decisions.

Source: Notícias Agrícolas