Coffee Prices Correction: Liquidations Drag Down Prices After Strong Rally

Coffee prices underwent a strong correction on Tuesday (11) after a period of significant gains in recent days. Profit-taking by funds triggered a wave of liquidations, further intensified by the activation of sell-stops, leading arabica prices to post their steepest drop since December 2024. Despite the price decline, the market remains focused on global supply concerns, which continue to be a key factor in sustaining future price levels. The most active arabica contract initially rose 2.1% during the day, reaching a record high of $4.29/lb, but later reversed course, closing with a 3.97% drop.

The impact of liquidation was felt across all contract maturities, with the March/25 contract settling at 413.45 cents/lb, down 1,560 points. Longer-term contracts also declined, with May/25 losing 1,670 points and September/25 dropping 1,540 points. Robusta followed the negative trend with more moderate declines, ranging from $18 to $35 per ton across key maturities. The selling pressure suggests that investors are adjusting their positions after the recent price rally, but the tight global supply could limit further losses in the medium term.

In the domestic market, prices also retreated in response to movements in international exchanges. Arabica type 6 saw declines across various producing regions, with Franca/SP experiencing the most significant drop of 3.16%, closing at R$ 2,760.00 per bag. The peeled cherry variety also posted notable losses, with a 1.82% decline in Guaxupé/MG and 1.76% in Campos Gerais/MG. Despite these declines, the limited supply in the physical market may prevent steeper drops, keeping prices at elevated levels in the short term.

Fontes: Noticias Agrícolas Café: Preço do arábica encerra sessão desta 3ª feira (11) em queda, mas... - Notícias Agrícolas