Coffee Market Remains Volatile Amid Dollar Pressure and Climate Uncertainties

The coffee market remained volatile this Wednesday (26), closing the session with opposite movements between arabica and robusta. The pressure on arabica came from the strengthening of the dollar, which impacted various commodities, and the increase in ICE-monitored stocks, which reached a one-week high. On the other hand, robusta managed to recover at the end of the session, supported by the decline in certified stocks to the lowest level in two months. However, traders are increasingly concerned about the impact of high prices on global demand, raising questions about consumption capacity amid rising costs.

In the futures markets, arabica recorded more significant losses, with the March/25 contract dropping 105 points to 379.45 cents/lb. Robusta, on the other hand, showed a more stable movement, fluctuating between small losses and gains, closing the March/25 contract with a slight decline of $1, at $5,428/ton. Climate uncertainties also remain on the radar, with Cepea warning that heat waves in producing regions could affect the final development of the 2025 crop. This climatic factor could add even more volatility to prices in the coming weeks, as supply conditions remain one of the market’s main drivers.

In the domestic market, prices followed the negative trend of the New York exchange, with arabica type 6 registering drops of up to 4.80% in Espírito Santo do Pinhal/SP, trading at R$2,380.00 per bag. The pulped natural variety also suffered devaluations, especially in Espírito Santo do Pinhal/SP, where it fell 3.70% to R$2,600.00 per bag. Liquidity in the physical market remained low, reflecting producers’ caution amid price instability. With global stocks fluctuating and climate conditions adding uncertainties to the next crop, the sector must remain attentive to commercialization opportunities and the medium-term impact on demand. Fonte: Noticias Agrícolas Café: Preços fecham 4ª feira (26) em lados opostos devido força do dólar e... - Notícias Agrícolas