Coffee Report - September 19th

Market monitoring high temperatures in Brazil and has appreciation day

The Arabica coffee futures market ended the first session of the week with technical appreciation for the main contracts on the New York Stock Exchange (ICE Future US).

Confirming the trend pointed out by analysts, the market became climate-related and monitors conditions in Brazil. The high temperatures predicted for the next few days are worrying the sector. According to the National Institute of Meteorology (Inmet), the days will be marked by extremes in maximum temperatures.

"Somar Meteorologia reported on Monday that the Minas Gerais region in Brazil received 2.5 mm of rain last week, or 20% of the historical average," added the analysis from the international website Barchart.

Current coffee supply is tight as Arabica coffee stocks monitored by ICE fell last Tuesday to 442,548 bags, the lowest level in 10 months. Additionally, Robusta coffee stocks tracked by ICE on August 31 fell to a record low of 3,374 lots (data history since 2016), although these stocks have recovered slightly since then to a 4-week high last Friday -fair.

In Brazil, the physical market had just one day of technical adjustments in the country's main sales areas.

Source: Noticias Agrícolas