Coffee Ends the Week Lower Amid Profit-Taking and Rain Forecasts in Brazil and Vietnam

Coffee prices ended this Friday (07) with moderate losses on international exchanges, extending the declines of recent sessions. After a period of strong gains, funds and speculators took profits, pressuring prices in the short term. However, market fundamentals remain solid, with historically low stocks in both producing and consuming countries, along with global climate challenges. Somar Meteorologia highlighted that the forecast for rain in Brazil next week contributed to the downward trend, providing temporary relief to supply concerns.

In the robusta market, prices faced additional pressure due to forecasts of heavy rainfall in Vietnam, the country’s largest coffee-producing region. Additionally, Vietnamese exports grew by 6.6% in February, according to the General Statistics Office, adding further pressure on prices. As a result, robusta futures saw significant declines, with the March/25 contract dropping by $110 to $5,342/ton. Meanwhile, arabica also recorded losses, with declines of up to 330 points in the longer-term contracts, reflecting the impact of financial movements and expectations of improved weather conditions.

In the Brazilian domestic market, coffee trade remained virtually stalled, as sellers held back from accepting buyers’ price offers. According to Escritório Carvalhaes, demand exists for all coffee grades, but the lack of agreements has kept sales volumes below the levels needed to meet domestic consumption and export demands. Among the monitored regions, only Poços de Caldas/MG showed positive price movement, with arabica Type 6 rising by 0.83% to R$ 2,440.00 per bag, and Pulped Natural gaining 3.89% to R$ 2,670.00 per bag. The uncertainty and volatility are expected to persist in the coming days, as the market closely watches weather developments and investor behavior. Fonte: Noticias Agrícolas Preços do café fecham sessão de 6ª feira (07) com perdas moderadas nas... - Notícias Agrícolas