Coffee Futures: Arabica Falls in NY, While Robusta Rises in London

The coffee futures market closed trading this Friday (19th) with devaluation in New York, confirming the trend of price adjustments. Arabica contracts for September/24, December/24, March/25, and May/25 saw significant drops of 270, 265, 255, and 280 points, respectively. This decline was driven by Brazil's harvest data and the expected correction following last week's high values. According to consultancy Safras & Mercado, Brazilian coffee growers have harvested 74% of the 2024/25 crop by July 16, an accelerated pace due to dry weather.

In London, the robusta market showed an opposite reaction, with increases in futures contract prices. Contracts for September/24, November/24, January/25, and March/25 rose by $51, $38, $25, and $7 per ton, respectively. Concerns over Asian supply, particularly from Indonesia and Vietnam, have maintained volatility in robusta prices. Indonesian buyers are less active, and Vietnam's crop remains uncertain as the harvest only begins in November.

In the Brazilian physical market, there was devaluation in the main trading regions. Type 6 hard cup coffee saw declines of 1.72% in Guaxupé/MG, 0.70% in Poços de Caldas/MG, 2.04% in Machado/MG, and 1.69% in Campos Gerais/MG. Pulped natural coffee also faced significant drops, with devaluations of 1.97% in Guaxupé/MG, 0.67% in Poços de Caldas/MG, and 1.62% in Campos Gerais/MG. These variations reflect the current market dynamics, with technical adjustments and climatic influences affecting supply and demand.

Source: Notícias Agrícolas