Coffee Market Recovers as Arabica and Robusta Futures Rise Amid Climate Concerns

The coffee market showed a moderate recovery this Wednesday (25), after starting the session with declines in both New York and London exchanges. Arabica coffee futures closed higher, reflecting a significant gain, with the December/24 contract rising 130 points, closing at 269.10 cents/lbp. Robusta also saw an increase, with the December/24 contract up by $134, closing at $5,446/ton. This recovery is mainly attributed to concerns over the impact of adverse weather in key producing regions, which could affect future supply.

Price volatility continues to be driven by forecasts that global stock levels remain low, both at destinations and origins, as highlighted by the Hedgepoint report. The market's sensitivity to any disruptions or declines in production is clear, as unfavorable weather conditions in producing countries like Brazil and Vietnam increase uncertainty. This context puts upward pressure on future prices, as limited supply remains a central concern.

In the Brazilian domestic market, activity was more restrained, though there were price gains in certain regions. Arabica Type 6 coffee saw a significant rise of 7.64% in Rio Grande do Sul, while the Pulped Natural also recorded increases, particularly in Poços de Caldas and Varginha/MG. This behavior suggests that, despite producers’ caution in trading, the perception of limited supply due to weather is still affecting prices, both in the international and domestic markets.

Source: Notícias Agrícolas