Coffee Market Fluctuates with Weather Forecasts and Production Challenges

The coffee market remains highly sensitive to weather conditions, as highlighted by agronomist Alysson Fagundes from Procafé. According to him, price behavior has been driven by rain forecasts. When rain is predicted, prices drop; however, when rain disappears from forecasts, prices rise again. This cycle reflects the coffee production's heavy reliance on climate conditions, especially in Brazil, where recent droughts and extreme temperatures have already caused significant damage to crops.

On Monday (30), Barchart reported that despite an initial drop in prices due to forecasts of substantial rain in Minas Gerais, the market reversed and closed higher. This was due to concerns that the forecasted rain would not be enough to repair the damage caused by the previous extreme conditions. The December/24 arabica contract closed with a 110-point increase, while robusta also posted gains in future contracts, reflecting market nervousness regarding the recovery of the plantations.

In the Brazilian domestic market, prices showed slight decreases, but without major fluctuations. Experts continue to advise producers to capitalize on commercialization opportunities with sound strategies, including hedging operations to protect against volatility. Arabica Type 6 and Pulped Natural coffee experienced declines in some regions but also saw slight increases in others, illustrating that the market remains uncertain, heavily influenced by future weather conditions and the global response to supply changes. Source: Notícias Agrícolas