Coffee Prices Begin Week on High Driven by Supply Concerns

The week kicked off with a trend of rising coffee prices, driven by ongoing concerns about global supply, resulting in gains in both New York and London terminals. Arabica and robusta coffee futures contracts showed significant increases, reflected in benchmarks like July/24 and September/24. However, despite this appreciation, the market remains volatile due to weather conditions in key production regions such as Vietnam and Brazil.

Weather conditions continue to influence the market, with Brazil facing concerns about lack of rainfall, especially in Minas Gerais, a vital region for coffee production. The impending drought and its potential impact on productivity have supported prices, as reported by Somar Meteorologia. Meanwhile, in Brazil, the physical market followed the upward trend, with several trading centers registering price increases for different types of coffee.

Despite the initial gains in coffee prices this week, uncertainties persist due to adverse weather conditions and uncertainty surrounding global supply. While the appreciations observed in coffee futures and physical markets may provide temporary relief for producers, it is crucial to closely monitor future developments, especially regarding weather and production in important coffee-growing regions.

Source: Notícias Agrícolas