Intense appreciation of Coffee amid the absence of Vietnamese producers

The coffee market ended another day of trading with intense appreciation, especially in the main contracts traded in the London and New York terminals. This significant appreciation is once again attributed to concerns regarding the supply of Robusta from Vietnam, which remains out of the market. In London, contracts for May/24 increased by US$72 per ton, reaching US$3381, while in New York, May/24 registered an increase of 590 points, reaching US$192.20 cents/lbp.

These price increases led to coffee values ​​reaching their highest levels in 16 years, as highlighted by Vietnamese traders cited by the Reuters agency. They revealed that the country's producers and exporters are withholding between 30% and 35% of their crops, waiting for higher prices, which began to impact exports as early as February. Furthermore, problems in the Red Sea and a growing demand for this type of coffee increase concern in the sector.

On the other hand, analysis by the international website Barchart highlighted the weather conditions in Brazil, with Somar Meteorologia reporting that the Minas Gerais region received just 29.4 mm of rain in the previous week, representing half the historical average. However, in an interview with Notícias Agrícolas, the Procafé Foundation highlighted a more positive outlook for arabica crops before harvest, after three years of challenges, predicting a larger harvest compared to the previous cycle, but with no expectation of overproduction. In the Brazilian physical market, there was appreciation in some of the country's main sales areas.

Source: Notícias Agrícolas