Logistics, war and Chinese New Year justify significant appreciation

The coffee futures market had a day of significant appreciation in the London and New York terminals. Once again, the rise was driven by the conilon market, which in the face of global concerns continues to extend gains.

"The scarce supply of Robusta coffee triggered purchases by funds of Robusta coffee futures contracts. Robusta coffee stocks monitored by ICE fell on Tuesday to a record low of 3,113 lots," states the Barchart analysis.

According to Haroldo Bonfá, from Pharos Consultoria, several factors contribute to the advancement and breakout of important levels. Conflicts in the Red Sea, as well as the low water level in the Panama Canal, compromise global logistics.

The market, which was already concerned about the global supply of the product, is also supported as the Chinese Year approaches. The period is marked by less participation by Vietnam in the negotiations.

In New York, Arabica coffee rose 2.92%. March/24 had an increase of 525 points, traded for 185.25 cents/lbp, May/24 had an increase of 470 points, quoted for 182.05 cents/lbp, July/24 increased 435 points, traded for 181.80 cents/lbp lbp and September/24 had an increase of 430 points, worth 182.40 cents/lbp.

Arabica coffee prices are supported by concerns that recent dry weather in Brazil could harm coffee harvests. Somar Meteorologia reported last Monday that the Minas Gerais region received just 42.4 mm of rain last week, or 60% of the historical average.

In Brazil, the physicist followed and ended with appreciation in the country's main sales areas.

Source Notícias Agrícolas