Significant Drops in New York and London Reflect Climatic and Economic Trends

In Thursday's session (18), Arabica coffee futures on the New York Stock Exchange (ICE Future US) closed with significant drops, with the first expiration registering a decrease of 810 points, and the others showing declines of 890 to 925 points. Contracts for May/24 closed at 239.85 cents/lb, July/24 at 231.10 cents/lb, and September/24 at 229.35 cents/lb. The price decline was attributed to previous advances and monitoring of weather conditions in Brazil.

Information from Barchart highlights that Arabica coffee prices initially rose due to concerns about harvests in Brazil and Vietnam, but fell during the day. Weather conditions in Brazil, particularly in Minas Gerais, where rainfall was below average, and expectations for the start of the coffee harvest are among the main factors monitored by the market.

Regarding robusta coffee in London, contracts for May/24 fell to $4,081 and July/24 to $4,062, with favorable fundamentals such as restricted supply in Vietnam driving prices. Restricted supply and favorable fundamentals are also reducing the discount for Arabica coffee. In the Brazilian domestic market, Arabica and pulped natural coffee prices also showed downward movements in producing regions, reflecting the global devaluation trend.

Source: Notícias Agrícolas