Coffee Closes Higher as Unfavorable Weather and Weaker Dollar Boost Prices

Coffee prices closed higher on Tuesday (11) in international markets, driven mainly by the rise in robusta, which recorded a 3.29% gain in the May/25 contract. The weakening of the dollar against the Brazilian real also contributed to this movement, making Brazilian coffee more competitive globally. However, uncertainties remain regarding the actual size of Brazil’s 2025 crop, as unfavorable weather conditions throughout 2024 significantly impacted production potential, especially for arabica.

Weather forecasts continue to concern the industry, with experts warning of below-average rainfall and high temperatures, which could further affect soil moisture levels. If the drought persists, there is a risk of further losses for the 2026 crop, particularly due to the impact on arabica’s floral buds. Despite this challenging scenario, both robusta and arabica posted strong gains in futures contracts, reinforcing the perception of a volatile market that is highly sensitive to Brazil’s weather conditions.

In the domestic market, interest in different coffee grades remains high, but sellers’ reluctance to accept buyers’ price offers has made it difficult to close deals. Nevertheless, arabica’s physical prices have risen in key producing regions, with highlights including Guaxupé/MG (+1.97%), Poços de Caldas/MG (+2%), and Franca/SP (+1.92%). The Cereja Descascado variety also saw gains, reflecting the limited availability of high-quality coffee. This scenario indicates a cautious market, with producers closely monitoring weather conditions and price movements before committing to new sales. Fonte: Noticias Agrícolas Mercado do café termina sessão de 3ª feira (11) com ganhos sustentados pelo... - Notícias Agrícolas