Coffee on the Rise: Dry Weather and Stronger Real Impact the Market

Coffee prices closed Tuesday (18) with moderate gains in New York and mixed movements in London, reflecting adverse weather conditions in Brazil and the appreciation of the real against the dollar. The strengthening of the Brazilian currency discouraged export sales, reducing international supply and influencing prices. The persistent drought in major producing regions is already raising concerns about the potential output of upcoming harvests, impacting market expectations.

Analyst Lúcio Dias highlighted that irregular rainfall has created uncertainties regarding Brazil’s 2025 coffee harvest, as dry conditions have slowed the final growth and maturation of coffee beans. Additionally, water scarcity may trigger an early flowering for the 2026 crop, compromising its development and productivity. This outlook underscores the importance of climate monitoring and marketing strategies to mitigate risks and capitalize on market opportunities.

In the futures market, arabica coffee saw fluctuations in New York, with declines for the March/25 contract and gains in contracts from May/25 onwards. Robusta, on the other hand, showed minor variations without a clear trend. Meanwhile, in the Brazilian domestic market, negotiations remain stalled due to price disagreements between buyers and producers. With no consensus in sight, trading volume remains low, keeping the market stagnant at the beginning of the week. Fonte: Noticias Agrícolas Clima traz preocupação sobre a safra brasileira de café e pressiona as... - Notícias Agrícolas