Expressive Coffee Price Increase on Exchanges Reflects Global Supply Concerns and Adverse Weather

The week began with a significant rise in the futures market for coffee on the London and New York exchanges, reflecting ongoing concerns about global supply. In New York, July/24 contracts increased by 420 points, closing at 226.55 cents/lbp, while contracts for September/24, December/24, and March/25 also saw substantial gains. In London, robusta experienced notable gains, with the July/24 contract rising by $152 per ton, indicating a widespread increase in prices due to worries about adverse weather conditions in major producing countries like Brazil and Vietnam.

These concerns are highlighted by Barchart's analysis, which attributes the price rise to fears that excessive drought in key producing regions could harm harvests and reduce global production. In Brazil, despite the ongoing harvest, producers report that yields are below average in both arabica and conilon areas. Marcus Magalhães notes that despite the high prices, the situation is not entirely favorable for Brazilian producers, especially in Espírito Santo, where production frustrations are evident.

In the Brazilian physical market, prices also followed the trend of appreciation. In various trading regions, prices for type 6 hard drink and peeled cherry type saw notable increases. For instance, in Guaxupé/MG, type 6 hard drink rose by 2.75%, while peeled cherry increased by 3.03%. Other significant increases were observed in regions such as Poços de Caldas/MG, Araguari/MG, Machado/MG, and Varginha/MG, reflecting the complex market dynamics influenced by climatic and supply factors.

Source: Notícias Agrícolas