Coffee Prices Reach New Highs Driven by Adverse Weather and Dollar Surge

The coffee market continues its upward trend, with prices in both New York and London reaching new highs this Tuesday (27). Adverse weather conditions in major producing regions like Brazil have been the primary driver behind this movement. The lack of significant rainfall in key areas for arabica cultivation has pushed prices higher, reflecting concerns over future production. In London, robusta contracts also saw significant gains, with increases of up to $135 per ton.

Projections indicate that unfavorable weather conditions are likely to persist, which could continue to support elevated prices. A report from Hedgepoint Global Markets suggests that the low humidity expected in the coming weeks, particularly in September, could have an even greater impact on the 25/26 crop, potentially extending the price increases. Climate tension, therefore, remains a key factor in price formation, increasing volatility in the coffee market.

In the Brazilian domestic market, the impact of this international scenario is also reflected in prices. The appreciation of the dollar against the real contributed to increases in arabica and peeled cherry coffee prices in important producing regions. With significant gains in Varginha, Franca, and Guaxupé, domestic prices follow the upward trend observed in international markets, reinforcing the influence of climate and exchange rates on the dynamics of the coffee market.

Source: Notícias Agrícolas