Coffee on the Rise: Dry Weather in Brazil Drives Prices Up and Revives Supply Concerns

The coffee market closed this Wednesday (5) higher on the New York Stock Exchange, driven by concerns over dry and hot weather in Brazil. Somar Meteorologia warned that these conditions could harm coffee crops in their final stage of development before the May harvest, increasing uncertainty about supply. In London, prices showed mixed variations, reflecting the specific dynamics of the robusta market. According to Eduardo Carvalhaes, from Escritório Carvalhaes, stock levels remain low in both producing and consuming countries, reinforcing concerns about global supply.

After a period of profit-taking by speculative funds, the market once again recorded strong gains in this session. Arabica futures closed the trading day with significant increases, reaching a rise of 1,195 points in the September/25 contract, which settled at 389.50 cents/lb. This recovery reflects fears of supply restrictions in Brazil in the coming months, especially given the possibility of difficulties in meeting domestic demand and exports. The global coffee shortage continues to be a supporting factor for prices, with no signs of weakening demand.

In the robusta market, prices fluctuated, with declines in the March/25 and May/25 contracts, while longer-term maturities posted slight gains. The September/25 contract, for example, rose by $16, closing at $5,539 per ton. The volatility in the London market suggests that, despite the tight supply scenario, specific factors are influencing trading. The behavior of stocks, weather conditions in producing regions, and the actions of speculative funds will continue to be key drivers of future price movements in the global coffee market. Fonte: Noticias Agrícolas Café: Preços fecham 4ª feira (05) em alta sustentados pela preocupação com a... - Notícias Agrícolas