Coffee Prices Surge Amid Climate Concerns in Brazil and Vietnam

Arabica coffee prices recorded strong gains in Tuesday’s (25) session on the New York Stock Exchange, mainly driven by climate concerns in Brazil and Vietnam. The nearest contracts saw significant increases of 515 to 570 points, reflecting fears of a tighter supply due to adverse temperatures and below-average rainfall. In London, robusta also showed appreciation, with gains of up to $90 per ton, reaching its highest level in two and a half weeks. This scenario reinforces the influence of climate uncertainties on the global coffee market, sustaining the upward trend in prices.

Climate factors remain a key driver of market volatility. According to Cooxupé, high temperatures and lack of rainfall in Brazil could impact the current crop, increasing pressure on prices. Additionally, demand remains strong, with investors reacting to signs of a more limited supply. The Barchart report highlighted that these concerns pushed robusta prices higher in London and supported arabica prices in New York, demonstrating how climate fundamentals continue to play a crucial role in market movements.

In the domestic market, coffee prices showed mixed trends across key producing regions. Arabica type 6/7 saw gains in Guaxupé/MG (+1.59%), Varginha/MG (+1.15%), and Poços de Caldas/MG (+0.80%), while registering a 2.28% decline in Patrocínio/MG. The peeled cherry coffee variety also showed an upward trend, with notable increases in Varginha/MG (+1.89%) and Campos Gerais/MG (+1.13%). These figures indicate that, despite the external market’s appreciation, the domestic market remains volatile, requiring producers to closely monitor commercialization strategies.

Fonte: Noticias Agrícolas Café: Mercado finaliza a sessão desta 3ª feira com avanços em NY e Londres - Notícias Agrícolas