Coffee: Distinct Movements in the Global Market

The coffee market showed distinct movements, with robusta coffee recording a significant increase, reaching record levels, while arabica coffee also saw a rise, driven by the strength of robusta prices. The rise in robusta was influenced by the persistent shortage of supplies in Vietnam, the main producer of this variety, and reports of production below expectations in Brazil. These factors contributed to an atmosphere of optimism in the coffee markets.

Weather conditions also played a significant role, with reports of ongoing drought in the central highlands of Vietnam, which could affect production in the coming days. This scenario has raised concerns about the global coffee supply, especially of robusta. This climate uncertainty may continue to influence prices in the upcoming trading periods as traders closely monitor the impact of weather conditions on production.

On the other hand, certified arabica coffee stocks at ICE continued to increase, signaling a rise in supply of this variety. This increase in stocks may exert pressure on arabica coffee prices in the future, as supply outpaces demand. Market movements reflect the complex interaction between supply, demand, and climatic factors, underscoring the importance of comprehensive analysis to understand coffee market trends.

Source: Investing.com