Coffee market ends with price drop and risk aversion

The coffee futures market experienced another day of price decline this Wednesday, continuing the volatility observed in April. With investors attentive to financial movements, the beginning of May brought adjustments in the market, resulting in devaluations in futures contracts. In New York, July/24 led the losses, followed by September/24, December/24, and March/25, reflecting the influence of weather forecasts in

Brazil and economic data from the United States.

The Federal Reserve of the United States kept interest rates stable, indicating a stance inclined towards possible reductions in borrowing costs but taking into consideration recent inflation readings and suggesting a possible stall in the movement towards economic balance. This decision, announced after a two-day meeting, influenced market

dynamics, reflected in coffee price adjustments.

Despite persistent concerns about global supply, with a particular focus on Vietnam, where expectations are for the return of rainfall and lower temperatures after a prolonged dry spell, the market also closely monitors trends in London. On the London Stock Exchange, robust coffee also experienced devaluation, reflecting a global scenario of economic and climatic uncertainties.

Source: Notícias Agrícolas