Market full of uncertainties: Arabica accumulates a drop of almost 30% in the year, while conilon advances 19%

The last trading session of the year saw significant losses for the Arabica coffee futures market. On the New York Stock Exchange, arabica fell 4.90% and at the London terminal, the conilon type fell 3.24% this Friday (29).

In London, March/24 saw a drop of US$ 95 per ton, traded at US$ 2841, May/24 recorded a drop of US$ 92 per ton, quoted at US$ 2757, July/24 saw a devaluation of US$ 77 per ton , traded for US$ 2964 and September/24 recorded a drop of US$ 71, quoted for US$ 2653.

In keeping with the reality that the producer experienced throughout the year, the trading session was marked by a lot of instability. There are no doubts about the fundamentals, but the fact is that the market still has countless unanswered questions for 2024.

Despite the expectation of a more positive harvest in Brazil next year, with the high temperatures of recent months associated with irregular rainfall, the market is experiencing a moment of uncertainty.

Climate change raises a lot of concern even in other producing origins, such as Asia, the largest Robusta coffee producing region in the world, which is expected to deliver at least six million bags less in the next cycle.

With today's lows, the arabica market has accumulated a drop of 26.57% when the price is compared to trading on January 3, 2023. In the opposite direction and confirming the concern about supply, conilon has accumulated a 19% increase in value in the period.

In Brazil, with no dollar movement, the day was marked by stability in the country's main trading areas. 

Source: Notícias Agrícolas