Coffee Market Swings Amid Currency Pressure and Tight Stocks: Arabica Drops While Robusta Shows Strength

The international coffee market experienced a day of contrasts this Tuesday (08). Arabica closed with a slight decline, mainly pressured by the depreciation of the Brazilian real against the dollar, which reached its lowest level in two and a half months. This currency movement stimulates Brazilian exports and ends up weighing on future prices in New York. On the other hand, robusta showed a mixed performance, with the nearest contracts rising, driven by a drop in ICE-monitored stocks to their lowest level in three weeks, signaling a possible restriction in the global supply of this variety.

Despite the fluctuations, market fundamentals remain stable. The Carvalhaes Office emphasizes that stocks remain low in both producing and consuming countries, and that weather-related issues continue to affect key producing regions. However, experts maintain a cautious stance amid the current global trade uncertainty, fueled by the recently announced reciprocal tariffs by the United States. According to the report, it is still too early to predict how these changes in international trade rules will effectively impact the coffee market.

In the Brazilian domestic market, prices also showed mixed behavior, reflecting international volatility. In some regions, such as Varginha/MG, arabica type 6 rose by 1.24%, while other locations, like Espírito Santo do Pinhal/SP, recorded sharp drops of up to 11.54%. The pulped natural followed the same trend, with steep declines in some areas but slight gains in others. This scenario highlights producers’ caution and the direct influence of external factors on price formation in Brazil. Fonte: Noticias Agrícolas Café: Bolsa de NY fecha sessão desta 3ª feira (08) com quedas moderadas... - Notícias Agrícolas