Coffee Prices Soar Amid Adverse Weather and Low Stocks

Coffee prices started March with strong gains in international markets, driven by concerns over weather conditions in Brazil. Below-average rainfall in Minas Gerais and intense heat waves in key coffee-growing regions may compromise the development of the 2025/26 crop, creating uncertainty about global supply. Additionally, certified stocks remain at low levels, especially robusta, which hit a two-month low, reinforcing the upward trend in prices.

The tight supply scenario and the strong price appreciation in recent months also explain the rise in quotations. With global prices doubling over the past 14 months, many Brazilian producers have already sold almost their entire crop, anticipating potential market fluctuations. This reduced grain availability has contributed to further sharp increases in futures contracts. Arabica recorded gains of over 1,300 points across key maturities, while robusta rose by more than $150 per ton, consolidating a positive day for the sector.

However, the Brazilian physical market remained inactive on Monday (03) due to the Carnival holiday. Even so, the upward trend in international prices may influence future negotiations as market participants assess the climatic impacts and global demand behavior. With tight stocks and concerns about the upcoming harvest, volatility is expected to remain a key factor in the coming weeks. Fonte: Noticias Agrícolas Café: Preocupação com a safra brasileira faz preços do arábica encerrarem 2ª... - Notícias Agrícolas