Coffee Market Instability: Prices Drop on NY and London Exchanges

The Arabica coffee futures market closed on Friday (14th) with devaluation in the main contracts on both the New York and London exchanges. In New York, the benchmark contract fell by 190 points, closing at 224.15 cents/lbp, while in London, Robusta dropped $84 per ton, ending at $4009. The week was marked by significant price instability, reflecting market pressures, such as the news that Brazil exported over 4 million bags in the previous month, contributing to the pressure on prices.

Weather conditions in Brazil continue to favor the harvest, allowing for a faster pace than in recent years. Analysts indicate that volatility is expected to persist in the coming weeks, requiring producers to remain vigilant to secure good deals. The lack of rain in key regions such as Minas Gerais, reported by Somar Meteorologia, supports coffee prices by raising concerns about future supply. This climatic dynamic is a critical factor to monitor as it may continue to influence price volatility.

In the Brazilian physical market, stability prevailed in the main trading hubs, with a few exceptions. The type 6 hard drink bica corrida saw a slight drop of 0.81% in Campos Gerais/MG, closing at R$ 1,344.00, while the peeled cherry type recorded a decline of 0.78%, ending the week at R$ 1,404.00. These movements reflect the resilience of the physical market amid futures volatility, underscoring the importance of careful management and adaptive selling strategies for producers.

Fonte: Notícias Agrícolas