Coffee Market Declines: Liquidation Pressure and Volatility Impact Global Prices

The strong liquidation pressure returned to impact the coffee market on Monday (24), pushing arabica to two-and-a-half-week lows. After a recovery period observed between late January and early February, prices reversed part of their gains, reflecting speculative behavior and market volatility. Key factors on the sector’s radar include weather conditions in Brazil, crop commercialization, and high prices, which could influence global demand in the coming months. With high operational costs and uncertainties in the international scenario, the market must prepare for short-, medium-, and long-term challenges.

Arabica futures posted significant losses, with the March/25 contract falling 620 points to 393.80 cents/lb, while the May/25 contract dropped 445 points to 384.80 cents/lb. Robusta also followed the downward trend, with losses exceeding $150 per ton across all contracts. A combination of position liquidations and adjustments in global supply expectations led to sharp devaluations for both varieties, highlighting the market’s fragility amid ongoing uncertainties.

In the domestic market, prices followed the negative movement of international exchanges and ended the day lower in most monitored regions. Arabica type 6 fell 3.85% in Maringá/PR, trading at R$ 2,500.00 per bag, while in Machado/MG, it dropped 2.41% to R$ 2,430.00 per bag. The peeled cherry variety also saw losses, declining 2.26% in Varginha/MG. External pressure and low liquidity in the physical market keep producers cautious as they wait for better opportunities amid price instability. Fonte: Noticias Agrícolas Preço do café arábica reverte grande parte das altas recordes e encerra 2ª... - Notícias Agrícolas