Coffee Market Faces Volatility Amid Climate and Global Uncertainties

In recent days, the coffee market has experienced a combination of factors that directly influenced the prices of arabica and robusta. The depreciation of the real against the dollar boosted coffee exports from Brazil, while rains in the producing regions brought relief after a long period of drought. However, this scenario also led to a devaluation in international markets, with arabica losing over 2% on the New York Stock Exchange. Experts point out that despite the recent rains, flower losses are already impacting the 2025 harvest.

The Brazilian physical market showed no significant variations, even with the rise in the dollar and global uncertainties. Low global coffee stocks and logistical problems remain a concern, and the expectation of a smaller harvest in Vietnam reinforces the support for high prices. Furthermore, the potential postponement of the anti-deforestation law in Europe could provide additional relief to markets, reducing short-term uncertainties.

According to industry analysts, the rains, although late, are essential for future crops but insufficient to reverse the damage already done. Brazil’s export volume remains strong, with robust forecasts for the coming months. Still, the global coffee market remains volatile, with weather conditions and legislative issues being key factors in the future behavior of prices.

Source: Notícias Agrícolas