Coffee Market Shows Mixed Movements Amid Climate Influence and Global Factors

On Wednesday (16), the coffee market showed mixed movements, with gains in arabica on the New York Stock Exchange and declines in robusta in London. Arabica rose by 130 points in the December/24 contract, driven by reduced rain forecasts for Minas Gerais, Brazil’s main producing region. Climate uncertainty continues to be a key factor in price fluctuations, highlighting crop vulnerability to weather conditions.

On the other hand, robusta faced a decline of over 1%, closing the session with a drop of $50 per ton in the November/24 contract. The fall in robusta reflects expectations of increased supply and potential demand adjustments. According to analyst Laleska Moda, besides the climate, other factors such as the expected crop failure in Vietnam and the potential delay of the Anti-Deforestation Law are influencing coffee price volatility.

In the Brazilian domestic market, arabica type 6 and peeled cherry coffee saw slight increases, with Poços de Caldas/MG and Machado/MG showing appreciation. This rise reflects the impact of external market movements on the physical market, with climate concerns and limited global supply supporting prices, despite the volatility seen in international markets.

Source: Notícias Agrícolas