Week of great instability with weather and stocks on the radar ends with drops for arabica

The Arabica coffee futures market ended the week with devaluation for the main contracts on the New York Stock Exchange (ICE Future US). With no new fundamentals, the coffee market continues to monitor weather conditions in Brazil and producers continue to observe a constant "rise and fall" in prices.

"Coffee prices have also had some negative impact since Thursday, when Brazilian export group Comexim raised its estimate of Brazil's coffee exports for 2023/24 to 44.9 million bags, from a previous estimate of 41.5 million bags", adds the analysis from the international website Barchart.

According to international analysis, coffee buyers are avoiding purchasing Robusta beans from Vietnam as shipping costs and delivery times have increased due to Houthi rebel attacks on commercial ships in the Red Sea, which has led to some of the leading global buyers of Robusta coffee to reduce purchases of beans from Vietnam and secure more Robusta supplies from Brazil.

The market is experiencing a significant drop in production in Vietnam and Indonesia, the two largest producers of Robusta in the world. In Vietnam, the shortage is estimated at more than three million bags and in Indonesia at more than two million.

In Brazil, the physical market followed and ended with adjustments in some of the country's main sales areas.

Source: Notícias Agrícolas