Coffee Report - September 18th

Coffee: In NY, futures rise sharply and also drive prices in the Brazilian market

The coffee market accelerated its rises in this Friday's session (15) on the New York Stock Exchange and ended the day with gains of more than 400, doubling gains recorded earlier. Thus, the December contract closed trading at 159.15 cents per pound, rising 515 points, while the March/24 contract was at 159.75 cents/lb, an increase of 485 points.

"It's still too early to know exactly what's going on. The market had already been rising since this morning, but it doubled its highs. The fundamentals are still the same", explains market analyst Eduardo Carvalhaes, from the Carvalhaes Office. "We have to wait."

He further details that the arrival of September also leads the sector to change its demand dynamics, with the Northern Hemisphere preparing for winter, and this may be helping. "And we have low stocks in the main origins, which also contributes", adds the expert.

A new drop in the dollar against the real also gives room for continued gains in arabica futures in New York. The American currency closed

Friday with a drop of 0.03% and was quoted at R$4.87.

Source: Noticias Agrícolas