Solid Gains and Supply Concerns Drive Prices

The coffee market experienced a week of intense activity on international exchanges, culminating in additional gains on Friday. Both arabica in New York and robusta in London saw increases, maintaining the positive trend that characterized the week. Although momentum waned slightly throughout the day, both markets closed the week in positive territory, indicating strong demand and ongoing supply concerns.

Arabica and robusta prices reflected market dynamics, with modest yet significant gains. Arabica recorded increases of around 0.7%, while robusta saw its quotes reach new highs due to compromised supply in Vietnam. Severe drought in this country, combined with concerns about the impending crop, remains a central concern, driving prices to new heights.

Repositioning of funds and the search for positions in the coffee market also contributed to the upward trend in futures prices. Additionally, concerns about the weather in Brazil and other producing origins, especially the potential impacts of El Niño, added another layer of uncertainty to coffee markets, increasing volatility and keeping traders attentive to the latest news and analyses.

Source: Notícias Agrícolas