Arabica Coffee Sees Strong Gains in New York, Driven by Climate Concerns in Brazil and Vietnam

The session on Friday (23) was marked by a strong surge in arabica coffee futures prices on the New York Stock Exchange, with key contracts recording significant gains ranging from 360 to 440 points. This upward movement can be attributed to a price recovery following initial declines, driven by concerns over adverse weather conditions in major producing regions such as Brazil and Vietnam. The appreciation of future contracts reflects the potential impact of these conditions on the productivity of upcoming harvests, especially in a market already sensitive to climatic factors.

In the robusta market in London, despite the gains seen in arabica futures, prices showed a decline, with drops of $51 and $58 per ton in the September and November 2024 contracts, respectively. These declines contrast with the appreciation observed in New York, suggesting a differentiated response in the global coffee market to climatic conditions and supply expectations. However, concerns over production in Vietnam, which led robusta prices to reach new records, highlight the volatility and uncertainties permeating the coffee market.

In the Brazilian domestic market, coffee prices in key producing regions also saw an increase. The observed rises, ranging from 0.21% to 1.43%, reflect the impact of adverse weather conditions in Brazil, which, according to Cooxupé, have caused stress on coffee trees due to the lack of significant rainfall in the last 120 days. These increases in domestic prices, coupled with gains in international futures, indicate a trend of pressure on coffee prices, both domestically and internationally, as uncertainties about the next harvest persist.

Source: Notícias Agrícolas