Coffee Market: increases in New York and London boost optimism among producers

The futures market for Arabica coffee saw gains on the New York Stock Exchange on Tuesday (26), with contracts for May, July, and September 2024 showing significant increases, driven by concerns over Asian supply. Vietnam announced a projected 20% decline in coffee exports for the 2023/2024 season, due to adverse weather conditions that reduced robusta production and consequently supported Arabica prices.

Meanwhile, on the London Stock Exchange, robusta coffee also experienced significant gains, with increases of almost US$50 per ton in July, September, November, and January 2025. However, above-average rainfall in Brazil eased concerns about drought, negatively impacting coffee prices. Nevertheless, the outlook remains favorable for producers, who can take advantage of this period to strategically manage the upcoming harvest.

In the Brazilian domestic market, stability prevailed in the country's main trading centers, with modest price fluctuations for both type 6 hard-bean coffee and peeled cherry coffee. These figures reflect the current dynamics of the coffee market, where producers seek to optimize their operations in the face of price fluctuations and global weather conditions.

Source: Notícias Agrícolas