Reduced rain in Brazil in the coming days supports the appreciation of coffee

After opening the day with price devaluation, the Arabica coffee futures market ended the day with appreciation for the main contracts on the New York Stock Exchange (ICE Future US).

If at the beginning of the week the negotiation was marked by devaluation supported by the rains of recent weeks, in this session the concern with the volume of precipitation in the coming days supported an increase. "Short covering emerged on Tuesday in coffee futures, after updated weather forecasts predicted limited rain in Brazil's coffee-producing regions over the next ten days," highlighted the analysis from international website Barchart.

Furthermore, the most recent forecasts also indicate that high temperatures will remain in the country's main production areas.

On the London Stock Exchange, the conilon type also returned to operate with appreciation. May/24 increased by US$ 57 per ton, traded at US$ 3077, July/24 registered an increase of US$ 50 per ton, quoted at US$ 3014, September/24 saw an increase of US$ 44 per ton, traded by US$ 2956 and November/24 had an increase of US$ 39 per ton, quoted at US$ 2903.

Coffee stocks are low, which is a supporting factor for coffee prices. Last Wednesday, ICE-monitored Robusta coffee stocks fell to a record low of 1,958 lots, although they recovered modestly to a two-week high on Tuesday of 2,409 lots. Arabica coffee stocks monitored by ICE fell to a 24-year low of 224,066 bags on November 30, although they have recovered moderately, reaching a three-and-a-half-month high on Tuesday of 333,771 bags.

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

Source: Notícias Agrícolas