Climatic Impacts and Production in Colombia Affect Coffee Markets

The coffee futures market closed trading on Wednesday (5th) with distinct variations in the London and New York terminals, reflecting the complexity of climatic conditions in the main producing regions. In New York, arabica coffee contracts showed significant declines. This drop is associated with the continuous monitoring of the Brazilian harvest, which recently received above-average rainfall, easing immediate drought concerns and negatively impacting arabica prices.

In contrast, the robusta market in London showed a significant appreciation, driven by concerns about supply from Vietnam, one of the world's largest producers of this variety. Futures contracts for July/24 rose by $139 per ton. Climatic uncertainties in Vietnam supported this increase, highlighting how regional factors can have global impacts on commodity prices.

In addition to variations in the arabica and robusta markets, coffee production in Colombia also showed a notable increase, with May 2024 production growing by 39% compared to the previous year. This significant increase, without detailed explanations from the National Federation of Coffee Growers, suggests that local factors such as improvements in agricultural practices or favorable climatic conditions may have contributed to the growth. The increase in production in Colombia adds another layer of complexity to the global coffee market, affecting supply expectations and price movements.

Source: Notícias Agrícolas