Coffee Market Rebounds with Price Increases Amid Climate Concerns

The coffee market registered a significant recovery on Tuesday (17), after facing initial losses. Both Arabica and Robusta closed the day higher, with Arabica rising by 595 points in the December/24 contract, while Robusta gained $57 in the November/24 contract. These increases were driven by new weather forecasts predicting continued hot and dry conditions in Brazil’s coffee-growing regions, raising concerns among producers about the negative impact on the upcoming blooms.

Excessive drought in key Brazilian regions is sparking worries about the productivity of the 2025 crop, as highlighted by Fernando Maximiliano, an analyst at StoneX. According to him, the dry weather is hampering the development of coffee flowers, which is crucial for securing a good yield. While this situation is alarming for production, it is pushing prices upward as global coffee supply becomes more uncertain.

In the Brazilian domestic market, prices followed the upward trend seen in international exchanges. Arabica type 6 saw significant increases, with a 6.16% rise in Rio Grande do Sul, while peeled cherry coffee also recorded gains in regions like Espírito Santo do Pinhal. However, there was a slight 1.27% drop in Varginha/MG. Despite the volatility, the physical market reflects scarcity concerns, keeping prices at high levels.

Source: Notícias Agrícolas