Coffee Prices Drop: Position Liquidation and High Volatility Shake the Market

The coffee market experienced a sharp decline on Tuesday (25), with arabica hitting a new three-week low, pressured by the liquidation of long positions. This correction follows the price rally observed between late January and early February. Additionally, currency movements influenced the recent appreciation of coffee on the New York Stock Exchange, making the current drop a response to market realignment. Despite the losses, the outlook still points to a limited supply, particularly of arabica, and low stock levels, which could drive further volatility in the coming sessions.

In the domestic markArabica futures saw significant losses, with the March/25 contract falling 1,330 points to 380.50 cents/lbp. Robusta also followed the downward trend, losing over $120 per ton across all contracts. After months of strong price appreciation, the coffee sector now faces the challenge of demand, which may be impacted by high prices. Analysts suggest that a clearer market stabilization might only occur with the arrival of Brazil’s 2025/26 harvest, which is expected to increase supply.

et, low liquidity remains a key factor, as coffee availability is still limited. Prices followed NY’s decline, with arabica type 6 dropping 7.41% in Espírito Santo do Pinhal/SP, trading at R$ 2,500.00 per bag. The peeled cherry variety also saw devaluations, with losses of up to 5.26%. Given this scenario, producers remain cautious about market fluctuations and may delay new sales while waiting for better opportunities.

Fonte: Noticias Agrícolas Preços do café devem se estabilizar após entrada da safra brasileira 25/26 - Notícias Agrícolas