Volatility and Low Stockpiles Keep Coffee Prices High

The international coffee market showed strong volatility this Thursday (08), ending the day higher on both the New York and London exchanges. Despite trading below the highs of the previous week, prices remain supported mainly by concerns over Brazil’s smaller harvest, which continues to be the key focus globally. Analysts highlight reduced stockpiles and speculative fund activity as central elements behind the price instability.

Jack Scoville of The Price Futures Group emphasizes that prices remain high due to tight supply combined with steady demand. Arabica futures posted significant gains, with the July/25 contract rising 325 points to 387.35 cents/lbp. Robusta also advanced across major contracts, with increases ranging between $22 and $26 per ton, reinforcing the firmness in international markets.

Domestically, however, prices fell in key producing regions. Arabica type 6 and pulped natural saw modest declines, likely reflecting pressure from logistical costs, exchange rate fluctuations, and a temporary disconnect between global trends and local negotiations. Even so, the broader outlook points to a market closely watching weather shifts and Brazil’s export capacity in the coming months.

Source: Notícias Agrícolas