Renewed concern about supply drives appreciation

After opening with a negative variation, the Arabica coffee futures market returned to rising, ending the day with gains in New York. This trend was once again driven by the appreciation of Robusta at the London terminal. May/24 led the movement with an increase of 120 points, reaching 183.85 cents/lbp, followed by July/24 with an increase of 100 points, reaching 182.25 cents/lbp, and September/24 with an increase of 90 points, quoted at 181.85 cents/lbp. This turnaround came after the market initially reacted to Rabobank's figures, which indicated a surplus of 4.5 million bags for the next cycle, but also reduced supply for the current cycle.

Meanwhile, in London, contracts also rose, with May/24 rising US$ 17 per ton, quoted at US$ 3277. This appreciation reflects the continued concern about the restricted supply of the product and low stocks. Robusta coffee stocks monitored by ICE fell to a record low of 1,958 lots, indicating sustained demand. Additionally, Arabica coffee stocks fell to their lowest level in 24 years, suggesting tight global supplies.

In the Brazilian physical market, the main sales areas followed this appreciation trend. Highlights include Guaxupé/MG, where the type 6 hard drink bica race increased by 0.50%, and Poços de Caldas/MG, with an increase of 0.99%. These increases reflect the dynamics of the global market and the ongoing concern about coffee supply.

Source: Notícias Agrícolas