Weather Conditions and Exchange Rates Drive Prices Up on the New York Stock Exchange

On Wednesday, September 21st, Arabica coffee futures prices on the New York Stock Exchange saw a significant increase, with key contracts rising between 75 and 115 points. This recovery in prices came after a morning of declines, driven primarily by adverse weather conditions in Brazil and Vietnam, which are threatening the global coffee crop. Concerns about premature coffee tree flowering in Brazil and prolonged drought in Vietnam are elevating market fears, supporting higher prices.

In addition to weather-related factors, exchange rates also influenced prices. The depreciation of the Brazilian real against the dollar encouraged export sales by Brazilian producers, contributing to the rise in coffee futures prices. This combination of weather and currency factors created a bullish scenario for futures contracts, highlighting the coffee market's sensitivity to external variations and currency movements.

In the Brazilian domestic market, coffee prices showed slight variations, with some regions experiencing increases while others saw declines. While Arabica type 6/7 coffee in Poços de Caldas/MG faced a 1.40% depreciation, other regions like Campos Gerais/MG showed a 0.69% gain. These fluctuations reflect regional differences in supply and demand, as well as the influence of international prices on the physical market. The current scenario demonstrates the volatility of the coffee market, heavily impacted by climatic uncertainties and global economic conditions.

Source: Notícias Agrícolas