International Coffee Market Sees Price Increases with Arabica and Robusta Appreciation

On Friday, August 2, the international coffee market saw significant appreciation, with positive price adjustments in both New York and London. Futures contracts for Arabica coffee rose by more than 1%, with the September/24 contract increasing by 325 points to 230.50 cents/lbp, and the December/24, March/25, and May/25 contracts also showing substantial gains. Robusta coffee, traded in London, also experienced increases, although smaller, with positive adjustments of up to 8 dollars per ton across different futures contracts.

The rise in coffee prices can be attributed to uncertainty surrounding the Brazilian harvest and concerns about weather conditions in major producing regions. Carlos Augusto Rodrigues de Melo, president of Cooxupé, indicated that the Brazilian crop failure could range between 10% and 15% due to adverse weather conditions, leading the cooperative to lower its expected intake for the current cycle. Additionally, coffee exports from Honduras dropped by 11% in July, as reported by the Honduran Coffee Institute, contributing to short-covering in the futures market and influencing the price increase.

In the Brazilian physical market, prices also followed this trend of appreciation. The type 6 hard drink fine cherry showed increases in several regions, such as Guaxupé/MG, which recorded a rise of 1.76%, and Campos Gerais/MG, with an advance of 2.13%. The peeled cherry type also appreciated, with Campos Gerais/MG seeing an increase of 2.04%. These movements reflect the market's response to expectations of lower supply due to climatic conditions and the accelerated pace of the harvest.

Source: Notícias Agrícolas