Arabica Rises on Supply Concerns, Robusta Falls on Market Pressures

The coffee futures market had a mixed session on Monday (29), with divergent behavior between arabica and robusta contracts in the New York and London markets. While arabica posted slight gains across all contracts, with the September/24 contract rising by 15 points, robusta prices fell, with declines ranging from $3 to $35 per ton. This divergence reflects the different supply and demand dynamics in the global coffee markets, where arabica is supported by concerns over supply, while robusta is pressured by other factors.

Concerns about Brazilian supply continue to influence the arabica market. According to a report by the Coffee Trading Academy, Brazil's coffee crop for 2024/25 is projected at 67.4 million bags, significantly below a previous forecast of over 70 million bags. This downward revision in the crop estimate highlights the challenges faced by producers, including adverse weather conditions such as high temperatures and water deficits, which are negatively impacting arabica crop yields.

In Brazil, the physical coffee market showed stability in the main trading regions, with only minor price variations. The type 6 hard beverage saw a decrease in Poços de Caldas/MG, while other regions such as Guaxupé/MG, Araguari/MG, Machado/MG, and Franca/SP maintained their prices. The peeled cherry type also showed stability, except for a slight drop in Poços de Caldas/MG. These movements reflect a cautious market, influenced by concerns about the harvest and the weather conditions that affect expectations for Brazilian coffee production and quality.

Fonte: Notícias Agrícolas