Real Depreciation Pressures Coffee Prices in Global and Domestic Markets

On Thursday, the Arabica coffee market on the New York Stock Exchange experienced a significant drop in futures, with devaluations ranging from 265 to 635 points. This negative movement was driven by the depreciation of the Brazilian real against the dollar, which encouraged Brazilian producers to increase their coffee sales for export, putting pressure on international prices. The long liquidation in futures, caused by the weak real, reinforced this downward trend.

In the London robusta market, a similar decline in prices was observed, with September/24 and November/24 contracts registering devaluations of $51 and $58 per ton, respectively. These declines reflect the influence of the exchange rate and producers' responses to export conditions, indicating a global coffee market under pressure from various economic factors.

Domestically, coffee prices in major producing regions of Minas Gerais, such as Guaxupé and Varginha, were also negatively impacted. The declines, ranging from 0.21% to 1.39%, highlight a market weakened by both international influences and local conditions. This devaluation directly affects the value of coffee sacks, reflecting the pressure on Brazilian producers and the uncertainties in the global market.

Source: Notícias Agrícolas