Drought in Brazil and Vietnam Drives Coffee Prices in New York and London

In Thursday's (30th) session, Arabica coffee futures saw strong gains on the New York Stock Exchange, with nearby contracts showing significant increases. The July/24 contract rose 355 points, closing at 233.00 cents/lb, while the September/24 contract advanced 365 points, ending at 231.95 cents/lb. The December/24 contract also climbed, gaining 360 points to close at 230.55 cents/lb. This price increase is attributed to prolonged dry periods in Brazil and Vietnam, which threaten coffee harvests and global production.

In London, robusta coffee also performed positively, with the August/24 contract rising by $93 per ton, trading at $4,207 per ton. The September/24 contract advanced by $89 per ton, closing at $4,131, and the November/24 contract increased by $83, priced at $3,997 per ton. According to Barchart, these increases reflect a moderately higher market, with robusta reaching one-month highs due to concerns over weather conditions in key producing countries.

In the Brazilian domestic market, coffee prices also showed variations in major producing regions, influenced by the Corpus Christi holiday. In Poços de Caldas/MG, the price of Arabica type 6/7 rose by 1.61%, closing at R$ 1,260.00 per bag, while in Varginha/MG, it remained stable at R$ 1,320.00 per bag. In Araguari/MG, there was a significant increase of 7.69%, with the price reaching R$ 1,400.00 per bag. In Rio Grande do Sul, the price of type 6 coffee gained 6.00%, closing at R$ 1,325.00 per bag. These movements indicate a dynamic market influenced by both climatic factors and domestic demand.

Source: Notícias Agrícolas