Brazilian Real Strengthens Coffee Prices, While Robusta Stocks Hold Back Further Gains

The coffee market closed higher on Monday (June 9) on international exchanges, driven mainly by the appreciation of the Brazilian real against the US dollar — its strongest level in eight months. This currency movement tends to discourage Brazilian exports, thereby supporting futures contract prices on the exchanges. However, the international outlook remains complex: despite the recent rise, increased robusta exports from Vietnam and Uganda are sustaining global inventories, which helps limit more substantial gains.

In Brazil, the 2025 harvest is progressing steadily, with 31.8% already harvested as of June 9, according to StoneX — equivalent to 20.5 million bags. This volume entering the market partially eases supply-side pressure. Still, the global scenario remains tight: stocks are at historically low levels, and even with strong robusta productivity, losses in arabica production are keeping the supply-demand balance delicate. The expectation is that this imbalance will persist throughout the year, requiring constant attention from market operators.

In the domestic market, prices also rose, reflecting international optimism. Trading of new crop lots is gaining momentum, especially for conilon, whose sales are more advanced. In key producing regions, type 6 arabica saw significant appreciation, with highlights in Guaxupé, Campos Gerais, and Franca. The pulped cherry variety also posted gains in Guaxupé, Campos Gerais, and Poços de Caldas. This movement indicates that, even with greater availability, the market remains heated and sensitive to external and exchange rate fluctuations.

Source: Notícias Agrícolas