Coffee Market Closes the Week with Volatility and Currency Pressure

The coffee market ended the week with high volatility, consolidating losses on Friday (28). The depreciation of the Brazilian real against the dollar, reaching a more than three-week low, was one of the main factors pressuring prices, encouraging export sales by Brazilian producers. Despite this, supply conditions remain tight in Brazil, with reduced remaining stocks and challenges in meeting both domestic demand and exports in the coming months. The Carvalhaes Office warns that the 2025 crop will not be larger than the 2024 crop, which may sustain concerns about product availability.

In the futures market, arabica closed mixed, with slight variations between gains and losses, while robusta saw more significant declines, with losses of up to $54 per ton in the September/25 contract. According to analyst Lúcio Dias, market fundamentals remain unchanged, with low stock levels and forecasts of adverse weather conditions, which should keep volatility high in international exchanges. Although prices are expected to remain elevated in the coming months, they are likely to stay below the record highs observed recently.

In the domestic market, prices showed minor fluctuations, reflecting limited activity in the sector. Arabica type 6 saw slight increases in Espírito Santo do Pinhal/SP and Guaxupé/MG, while it declined in Poços de Caldas/MG. Meanwhile, peeled cherry coffee oscillated between small drops and gains, with no clear trend. The reluctance of producers to sell amid price instability remains a key factor limiting liquidity. Given this scenario, the market will continue to monitor the effects of currency fluctuations, weather conditions, and global demand to anticipate future movements. Fonte: Noticias Agrícolas Preços do café se consolidam mais baixos no fechamento da sessão desta 6ª... - Notícias Agrícolas