Arabica Coffee Futures Market Declines Under Pressure from Brazilian Harvest and Asian Retraction

The Arabica coffee futures market continues to face pressure, resulting in price declines in both New York and London. The main cause of this devaluation is the strong performance of the Brazilian harvest, which has maintained a robust supply in the market. However, there is growing concern about production yield, as adverse weather conditions, particularly the high temperatures in the first half of 2024, have led consultancies to lower their estimates. This creates a scenario of uncertainty for the coming months.

In addition to supply issues, other factors are influencing the market, such as certified stocks and information about Vietnam, another major global coffee producer. The withdrawal of Asian buyers from the market, driven by current prices, also adds pressure to the quotations. This lack of demand in Asia has a significant impact, as it reduces liquidity and competitiveness in the global coffee market, exacerbating the downward trend in prices.

At 1:22 PM (Brasília time), declines in futures contracts were evident: September/24 was trading at 225.80 cents/lbp, December/24 at 224.55 cents/lbp, March/25 at 223.35 cents/lbp, and May/25 at 221.55 cents/lbp. In London, robusta coffee also saw significant declines, with a depreciation of up to $80 per ton. These movements reflect the combined influence of supply and demand factors, as well as market expectations for the near future.

Source: Notícias Agrícolas