The Coffee Market Ends the Week with Arabica Rising and Robusta Under Dollar Pressure

The coffee market closed the week with distinct movements between Arabica and Robusta futures contracts. While Arabica prices continued their upward trend, reaching new historical highs in New York, Robusta retreated in London. The strengthening of the dollar put pressure on Robusta contracts, triggering liquidation in futures and contributing to a drop in prices. Meanwhile, Arabica remained firm amid ongoing concerns about global supply, reflecting uncertainty in market availability.

In Brazil, experts indicate that coffee production in 2025 will still be lower than in 2024 but not as negative as initially expected. Recent rainfall has improved crop conditions, reducing some of the pessimism surrounding the harvest. However, despite this improvement, stock levels remain tight, and production is still far from the record set in 2020. This reinforces the likelihood of sustained high prices in the international market. Volatility in futures contracts is expected to persist, influenced by supply and demand fundamentals and currency fluctuations.

In the Brazilian physical market, prices followed Arabica’s positive movement in New York, with moderate gains in key trading regions. Arabica Type 6 saw increases in Campos Gerais/MG, Varginha/MG, and Machado/MG, while Pulped Natural also gained value in Campos Gerais, Varginha, and Poços de Caldas. Despite price appreciation, trading activity remained slow, highlighting a cautious stance from producers amid uncertainties about the upcoming harvest and future price behavior. Fonte: Noticias Agrícolas