Coffee faces pressure at ICE, but limited supply prevents drastic drops

The Arabica coffee futures market closed lower on Wednesday (20), reflecting a trend of technical depreciation observed in the main contracts on the New York Stock Exchange (ICE Future US). May/24 led the decline with a drop of 65 points, followed by July/24 and September/24, with decreases of 40 and 45 points, respectively. The market faced pressure due to certified stocks at ICE, reaching the highest level in seven months, reaching 544,766 bags.

The influence of below-average rainfall in Brazil also impacted coffee prices. With recent precipitation in Minas Gerais falling well below historical averages, producers face challenges in developing the 24 harvest. Nevertheless, the outlook is viewed positively by analysts, with favorable weather for harvesting, sustained prices, and a favorable exchange rate for producers. Additionally, ongoing concerns about the situation in Asia contribute to keeping prices stable.

In the Brazilian physical market, Arabica coffee experienced a day of stability, with prices remaining firm in the main trading centers. Conversely, conilon coffee also faced devaluation in London, with declines in the May/24, July/24, September/24, and November/24 contracts. These movements reflect the complexity of the global coffee market, influenced by climatic, economic, and geopolitical factors.

Source: Notícias Agrícolas