Arabica Coffee Tests $4/lb and Maintains Historic Rally as Stocks Decline

Coffee prices closed Wednesday (05) with strong gains in international exchanges, driven by the ongoing Arabica rally in New York. The variety tested the $4/lb mark, recording its longest appreciation streak since 1980, according to Bloomberg. The limited availability of coffee in exchange-monitored warehouses, now at its lowest level since November, heightens concerns about global supply. Additionally, the appreciation of the Brazilian real against the dollar discourages Brazilian exports, reducing supply in the international market and supporting prices.

The bullish movement was also fueled by speculators increasing their long positions, prompting roasters to buy actively while producers hold back sales in anticipation of even higher prices. The March/25 Arabica contract surged 1,440 points, closing at 397.75 cents/lb, while subsequent contracts also posted significant gains. Robusta followed the upward trend, gaining up to $99 per ton, reflecting strong demand and tight global inventories.

In the domestic market, prices mirrored international trends, with significant increases in key producing regions. Arabica Type 6 saw sharp gains, including a 4.03% rise in Maringá/PR and 3.85% in Franca/SP, while Pulped Natural coffee also posted solid gains, reaching R$ 2,700.00 per bag in Campos Gerais/MG. This scenario highlights producers’ reluctance to sell large volumes amid expectations of even firmer prices in the short term.

Fonte: Noticias Agrícolas Café arábica estende o rally histórico nesta 4ª feira (05) e fecha sessão... - Notícias Agrícolas