Turnaround in the Market: Arabica Coffee Closes Higher Amid Climatic Uncertainties in Brazil

After starting the day with devaluation, the futures market for Arabica coffee ended Wednesday's (12th) trading with new price increases on the New York and London exchanges. September/24 rose by 340 points, trading at 224.85 cents/lb, December/24 increased by 320 points, quoted at 223.60 cents/lb, March/25 increased by 305 points, valued at 222.35 cents/lb, and May/25 rose by 290 points, quoted at 220.90 cents/lb. In London, robusta also went up again. September/24 increased by $33 per ton, valued at $4086, November/24 rose by $16 per ton, quoted at $3918, January/25 dropped by $1 per ton, valued at $3734, and March/25 fell by $5 per ton, trading at $3600.

On the international scene, weather conditions in Brazil were once again in the spotlight. The weather is positive for the harvest but raises concerns for the development of the next cycle. "Somar Meteorologia reported on Monday that the Minas Gerais region received no rain last week," adds Barchart's analysis.

Prices rose again even after Brazil reported shipping more than four million bags last month. The volume is noteworthy, and the country is on track for a record season. However, according to the Brazilian Coffee Exporters Council (Cecafé), despite the good harvest being collected, the country will not have a surplus, only enough to supply external and internal markets. In Brazil, the physical market followed suit and ended the day with appreciation in the main trading regions. Type 6 hard drink saw a 1.52% increase in Guaxupé/MG, trading at R$ 1,340.00, Poços de Caldas/MG increased by 0.74%, valued at R$ 1,360.00, Machado/MG rose by 3.03%, quoted at R$ 1,360.00, Varginha/MG increased by 2.27%, quoted at R$ 1,350.00, and Franca/SP appreciated by 2.22%, quoted at R$ 1,380.00. The peeled cherry type rose by 1.41% in Guaxupé/MG, trading at R$ 1,435.00, Poços de Caldas/MG increased by 0.71%, valued at R$ 1,420.00, Varginha/MG appreciated by 5.15%, quoted at R$ 1,430.00, and Campos Gerais/MG registered a 1.44% increase, valued at R$ 1,410.00.

Source: Notícias Agrícolas