Week of volatility and opportunities for brazilian producers

The coffee scenario this week was once again under the influence of concerns related to Asia, with Vietnam maintaining its restricted participation in the market. The increase in robusta coffee prices also contributed to sustaining the appreciation of arabica coffee. Analysts highlight that the moment continues to offer good opportunities for Brazilian producers, especially in hedging strategies and managing the exchange rate for the upcoming crop. After an intense week of gains, Friday saw a strong price adjustment, with the benchmark contract on the New York Stock Exchange closing up 180 points, traded at 188.85 cents/lbp, representing a weekly increase of 1.95%. In London, May/24 coffee saw an increase of $80 per ton, reaching $3396 per ton, a weekly increase of 3.60%.

Meanwhile, the market remains attentive to the weather conditions in Brazil, where the main producing regions reported good conditions for crop development, although last week's intense heat raises doubts about fruit ripening. Expectations are that the Brazilian arabica harvest will be advanced in important producing municipalities, with the prospect of more significant volumes. Despite the challenges and climate uncertainties, industry leaders highlight the opportunity to open new markets for Brazil, after years of crop failures. In the domestic market, coffee prices ended the week with stability in several regions, reflecting the dynamics of the national market.

Source: Notícias Agrícolas