Coffee Market: Arabica Recovery in NY, Robusta Fluctuations, and Impacts in Brazil

The Arabica coffee market experienced a recovery during Tuesday’s session (08), with futures contracts showing an increase on the New York Stock Exchange. This rise was driven by the expectation of rainfall in Brazil’s key producing regions, which is anticipated to aid the flowering of coffee crops. However, the upward movement was moderated by the depreciation of the Brazilian real against the dollar, which favored Brazilian exports. This encouraged producers to sell, slightly limiting the price increase.

In the robusta market, the situation was more mixed. In London, while the November/24 contract saw a slight decline, the January and March/25 contracts posted gains. These price fluctuations reflect the tightening ICE-monitored stocks, which hit a four-and-a-half-month low, supporting price stability. Additionally, dry weather in Vietnam, the largest robusta producer, is raising concerns among traders, as it may negatively impact global production of this coffee variety, adding uncertainty to future supply.

In Brazil’s domestic market, Arabica and pulped natural coffee prices showed significant regional variations. In Poços de Caldas and Campos Gerais, prices increased, while Varginha saw a slight drop. These regional movements reflect pressures from both the international market and internal supply and demand conditions. The awaited rains in Brazil and exchange rate trends remain crucial factors influencing prices, requiring producers to stay alert.

Source: Notícias Agrícolas