Concern about supply and rain causes coffee to advance in NY, London and physical return to the level of one thousand reais

The coffee futures market opened the week with significant appreciation in the London and New York terminals. Arabica rose 3.83%, while conilon registered an increase of 2.94% this Monday (22).

Coffee is once again supported by concerns about climate conditions in Brazil. The rains that still arrive irregularly and the high temperatures still keep producers up at night. "Drought conditions in Brazil are boosting Arabica coffee prices, while record Robusta coffee stocks are bullish for Robusta prices," highlighted the analysis from international website Barchart.

This Monday, Robusta coffee stocks monitored by ICE fell to a record low of 2,931 lots. Arabica coffee stocks tracked by ICE fell to a 24-year low of 224,066 bags on November 30, and are modestly up from Monday's 253,978 bags.

In London, March/24 had an increase of US$ 92 per ton, traded for US$ 3220, May/24 had an appreciation of US$ 71 per ton, quoted for US$ 3038, July/24 had an increase of US$ 55 per ton , worth US$ 2907 and September/24 registered an increase of US$ 57 per ton, traded for US$ 2842.

In Brazil, the physical market followed with increases in the country's main sales areas. Trading was once again negotiated above a thousand reais in all markets, with the exception of Poços de Caldas/MG, which ended up being worth R$990.00.

Source Notícias Agrícolas