Coffee Market Starts Week with Mixed Variations between Arabica and Robusta

The coffee market started the week with mixed variations in the main terminals, highlighting differences between arabica and robusta coffee. While arabica showed slight gains in futures contracts, robusta saw price declines. In New York, arabica contracts for July 2024 rose 10 points to 206.70 cents/lbp, with other maturities registering small advances. In contrast, on the London Exchange, robusta had a significant drop, with the July 2024 contract falling by $19 per ton, closing at $3499.

These variations are attributed to different factors influencing each type of coffee. An analysis by Barchart highlights the recovery of ICE-monitored robusta coffee stocks, which rose to the highest level in nine months, reaching 4,312 lots. This increase in stocks is putting downward pressure on robusta prices. At the same time, adverse weather conditions in Vietnam, with insufficient rainfall and intense heat, continue to support arabica prices, increasing uncertainty about the global supply.

In the Brazilian physical market, the impact was smaller, with few price variations. Type 6 hard drink bica corrida rose only in Guaxupé/MG, with an increase of 3.84%, trading at R$ 1,163.00. Type cherry peeled also increased only in Guaxupé, registering an increase of 4.80%, quoted at R$ 1,222.00. This relative stability in the physical market contrasts with the fluctuations in futures markets, reflecting an adjustment to climatic and stock conditions affecting the global coffee scenario.

Source: Notícias Agrícolas