Market monitors Brazil, shipments weigh heavily and arabica ends with devaluation

The Arabica coffee futures market ended trading this Wednesday (14) with devaluation of the main contracts on the New York Stock Exchange (ICE Future US). In addition to monitoring weather conditions, the market is under pressure from Brazilian export data, recently released by Cecafé.

Brazil exported 3.961 million 60 kg bags of coffee in January 2024, a volume that represents a historic record for the first month of each year and implies growth of 39% compared to the same period last year. Foreign exchange revenue increased 30.4% in this comparative period, jumping from US$615.5 million to the current US$802.5 million.

In January this year, shipments abroad of the canephora species (conilon and robusta varieties), the second most exported, showed a substantial increase of 503.5%, boosting the good overall performance by reaching 457,787 bags, which represents 11.56% of the total. The leadership continues with Arabica coffee, with 3.208 million bags and a representation of 80.98%. The list is completed by products from the soluble segment, with 293,467 bags (7.41%), and from the roasted and roasted and ground sector, with 1,898 bags (0.05%).

Barchart's international analysis adds that coffee stocks are low, which is a supporting factor for coffee prices. On Wednesday, Robusta coffee stocks monitored by ICE fell to a record low of 2,343 lots. Arabica coffee stocks monitored by ICE fell to a 24-year low of 224,066 bags on November 30, although they recovered moderately, reaching a three-month high on Wednesday of 302,462 bags.

In Brazil, the physical market followed and ended with devaluation in the country's main sales areas.

Source: Notícias Agrícolas