Coffee Market Closes the Week with Divergent Movements and Expectations for the Next Harvest

Coffee prices ended Friday (21) with divergent movements on international exchanges. Arabica was pressured by the recovery of ICE-monitored stocks, which encouraged further liquidation of long positions. Meanwhile, robusta stocks fell moderately, contributing to gains in contracts for the variety. Additionally, bullish speculators took profits after recent rallies, while roasters slowed purchases following weeks of strong demand, suggesting that the market may be temporarily supplied.

In the international market, supply remains a key factor in price volatility. Indonesia is expected to recover in the 2024/25 harvest, while Vietnam still faces production constraints, with improvement expected only in 2025/26. With high prices, producers from various origins are holding back sales in anticipation of better opportunities, while Brazil approaches the 2025/26 harvest, which could provide partial relief in the medium term. Arabica closed the session with a 425-point gain for the March/25 contract, while later maturities saw slight declines. Robusta, on the other hand, posted gains across all contracts, reflecting the variety’s lower availability.

In the domestic market, prices followed the mixed international trend. Arabica type 6 rose in Guaxupé/MG but fell in Machado/MG and Campos Gerais/MG. Pulped natural also fluctuated, with a slight decline in Campos Gerais/MG and an increase in Guaxupé/MG. Low liquidity remains a factor, as producers remain cautious about the best time to sell, waiting for further price movements in the global market. Fonte: Noticias Agrícolas Café arábica registra mais um dia de recuperação nos estoques certificados e... - Notícias Agrícolas