Price Depreciation and Impact on Brazilian Producers

The futures market for Arabica coffee witnessed a depreciation and price adjustments in Tuesday's (23) trading, reflecting the recovery of stocks monitored by ICE in New York. July/24 saw a drop of 580 points, marking 221.85 cents/lbp, while September/24 and December/24 also showed significant declines. This correction was expected, especially considering the rise in Arabica coffee stocks. However, analysts maintain an optimistic view of prices in the medium term, despite current fluctuations.

In London, coffee prices also retreated, with July/24 recording a decrease of US$ 16 per ton. Weather conditions in Vietnam continue to be closely monitored, but this did not prevent price declines. The market remains sensitive to global supply data for the product, as analysts closely watch the scenario to assess future price trends.

In Brazil, the physical market followed the devaluation trend, with several trading places registering price drops. Type 6 hard-bean coffee and peeled cherry type showed declines in various producing regions, including Guaxupé/MG, Poços de Caldas/MG, and Varginha/MG. Despite these declines, price increases during the harvest period contributed to a significant increase in net margins, especially in the Southern Minas Gerais region.

Source: Notícias Agrícolas