Arabica Coffee Futures Market Starts August with Depreciation and Harvest Pressure in Brazil

The arabica coffee futures market began August with significant depreciation in major contracts on the London and New York exchanges. Prices fell consistently, with the September/24 contract dropping 195 points, the December/24 contract falling 175 points, and the March/25 contract losing 155 points. The rapid progress of coffee harvesting in Brazil has contributed to the decline in prices, as highlighted by the international analysis site Barchart. This downward trend reflects expectations of increased supply due to the accelerated harvest progress.

In the robusta market, the decline was similar, with contracts also registering notable drops. The September/24 contract in London fell by $36 per ton, while the November/24 and January/25 contracts also experienced significant declines. Barchart's analysis mentions that the increase in ICE-monitored robusta coffee stocks, which reached a one-year high, has contributed to the negative pressure on prices. The recovery of these stocks, following historically low levels, is seen as a factor that may limit short-term price appreciation.

In the Brazilian physical market, there were price variations in several trading regions. The type 6 hard drink bica corrida variety showed a 0.71% increase in Guaxupé/MG, while other regions like Patrocínio/MG, Machado/MG, and Franca/SP recorded declines. Meanwhile, the peeled cherry type saw a slight depreciation in Guaxupé/MG and remained stable in other regions like Poços de Caldas/MG, Patrocínio/MG, and Varginha/MG. These fluctuations reflect local conditions and the supply and demand dynamics in the Brazilian coffee market.

Source: Notícias Agrícolas