Prices Reach New Heights Amid Climatic Challenges in Vietnam

The coffee market is experiencing a period of great upheaval, with prices reaching new records. Robusta hit $4,000 per ton in London, while arabica indicated a pursuit of 240 cents/lbp in New York. These movements reflect the market's sensitivity to global supply concerns, especially in Vietnam, which faces climatic challenges that could impact the upcoming harvest.

Vietnam, known for its coffee production, is experiencing adverse weather conditions that affected production in the last cycle and raise concerns for the next. The El Niño phenomenon brought higher temperatures and severe drought, worrying the market, which sees no immediate indications of climate change. The scarcity of rain and high temperatures are harming plantations, affecting production, and generating uncertainties about the future supply.

In addition to climatic challenges in Vietnam, the market also monitors possible effects of La Niña. The lack of definition in Vietnam drives prices, with analysts highlighting the importance of monitoring weather conditions and market movements to understand risks and trends. The sector also observes global coffee consumption, which continues to evolve, providing additional support to prices amid these challenging conditions.

Source: Notícias Agrícolas