Coffee Market Begins Week on a High Amid Global Supply Concerns and Price Adjustments

The coffee market started the week with a significant rise in major international terminals, driven by global supply concerns. After days of price adjustments, coffee prices surged: the September/24 contract rose by 485 points to 243.05 cents/lbp, and the December/24 contract increased by 460 points to 241.30 cents/lbp. London also saw gains, with the Robusta September/24 contract rising by $51 per ton, priced at $4581. These increases reflect uncertainties in global supply, especially in key producing regions like Brazil, where the lack of rainfall and high temperatures are raising concerns within the industry.

In Brazil, the physical market mirrored this trend of appreciation. Analysis from Somar Meteorologia highlighted the absence of rain in Minas Gerais last week, exacerbating concerns about the dry climate and its implications for the next harvest. Major consultancies, such as Safras & Mercado, have reduced their production estimates to 66.04 million bags, significantly lower than initial forecasts. This reduction, along with the dry weather and high temperatures, is increasing market tensions, contributing to price volatility until the next Vietnamese harvest.

Price increases were also observed in major coffee trading hubs in Brazil. In Guaxupé/MG, the type 6 hard drink bica corrida rose by 2.46% to R$ 1,460.00, while the peeled cherry type increased by 2.68% to R$ 1,532.00. Other regions, including Poços de Caldas/MG, Machado/MG, and Varginha/MG, also saw significant gains. These adjustments reflect a market sensitive to adverse climatic conditions and global supply and demand expectations, keeping prices at a high level.

Source: Notícias Agrícolas