Volatility and Climatic Concerns Drive Coffee Market This Week

This week was marked by a highly volatile market for both Arabica and Robusta coffee. Arabica coffee futures on the New York Stock Exchange closed with slight gains, reflecting instability and concerns over tight supply, especially of Robusta. Intense heat in Vietnam and delayed rains contributed to sustaining prices, with Robusta reaching historic levels and Arabica surpassing the 230 cents/lbp mark, surprising analysts. In Brazil, the beginning of the 2024 harvest and price adjustments in major trading centers were observed, with producers actively participating in the market, selling the remaining previous crop and hedging future trades.

Price instability was evident with the slight rise in Arabica coffee futures on the New York Stock Exchange, while Robusta prices in London saw significant increases. This dynamic reflects market concerns and the quest to secure adequate supplies in the face of unfavorable climatic conditions.

In Brazil, coffee price adjustments reflected both international volatility and local supply and demand conditions. With the 2024 harvest already underway in some regions, producers are more active in the market, taking advantage of favorable prices to sell both the current crop and to fix future prices. Variations in prices for type 6 and peeled cherry coffee in the country's main trading centers indicate the complexity of the current scenario and the importance of careful management by producers.

Source: Notícias Agrícolas