Trends in NY and London reflect climate improvements in Brazil

The coffee futures market closed this Monday (11) with a slight drop on the New York and London stock exchanges. Prices were influenced by recent rains in areas of Brazil, alleviating concerns about the previously observed drought. Arabica coffee on the New York Stock Exchange recorded a drop of 0.11%, while in London, the first contract rose 3.28%.

Last week, Robusta coffee reached its highest level in at least 16 years, which also impacts technical drops for the type at the beginning of the week. Recent rainfall in Brazil's producing areas contributes to expectations of a larger Brazilian harvest, as reported by Somar Meteorologia, which reported that Minas Gerais received 45.7 mm of rain last week, representing 107% of the historical average.

Internationally, the market reacted to the news that Vietnam's coffee exports in the first two months of 2023 increased by 16.4% compared to the previous year, indicating buoyant demand. In the Brazilian domestic market, there were few fluctuations in the country's main sales areas, with emphasis on the increase of 2.46% in Machado (MG) for type 6 hard drink bica Running, while Poços de Caldas (MG) recorded a drop in 1.92%.

These developments reflect a dynamic and constantly evolving market where climate and international demand factors play a significant role in determining price trends. Ellers Coffee continues to closely monitor these events to provide its customers and partners with up-to-date insights into the coffee market.

Source: Notícias Agrícolas