Futures Coffee Market Rises Amid Concerns over Global Supply and Adverse Weather

The week began with significant gains in the futures coffee market, both in London and New York, driven by ongoing concerns over global supply. In London, robusta rose by 3.89%, with the September/24 contract increasing by $163 per ton, trading at $4,348, and other contracts following the upward trend. In New York, arabica recorded a 2.38% increase, with the July/24 contract rising by $590 per ton, trading at $236.20 per ton. These increases are mainly attributed to the climatic situation in Vietnam, where high temperatures and lack of rainfall in the first half of the year raise concerns about future supply.

In Brazil, the physical market also reflected this appreciation, with increases recorded in the main trading regions of the country. Type 6 hard beverage bica corrida rose by 2.57% in Guaxupé/MG, traded at R$ 1,395.00, and other regions such as Poços de Caldas/MG and Campos Gerais/MG also saw significant increases. Type cereja descascado followed the same trend, with increases of 2.44% in Guaxupé/MG and 2.05% in Campos Gerais/MG. These increases reflect the physical market's reaction to international concerns over supply and adverse weather conditions in producing regions.

In addition to Brazil and Vietnam, Mexico is also facing climatic challenges that affect its coffee production. Recent reports indicate that 80% of the coffee plantations in the state of Chiapas have been severely affected by high temperatures and drought. Even with the return of rains, producers are seeking government assistance to maintain activities. This scenario reinforces the global uncertainty about coffee supply and the market's sensitivity to adverse climatic factors, which continue to influence prices and the dynamics of global supply and demand.

Source: Notícias Agrícolas