Volatile Coffee Market: Climate Concerns and Exchange Rates Drive Price Increases

The coffee market saw significant appreciation on Thursday (15), reflecting concerns about weather conditions in Brazil and exchange rate volatility. Coffee futures contracts in New York and London closed higher, with robusta coffee standing out due to substantial increases across all maturities. The expectation of rain in Brazil after a prolonged period of drought has kept the market on alert, directly influencing prices.

In addition to weather conditions, exchange rates also played an important role in market movements. The slight rise in the dollar, driven by positive economic data from the United States, reinforced bets on more gradual interest rate cuts by the Federal Reserve. This strengthening of the American currency puts pressure on coffee prices while creating an environment of uncertainty for Brazilian producers who are hoping for improved weather conditions to protect their crops.

In the Brazilian physical market, price variations were mixed, reflecting the complexity of the current scenario. While some regions, such as Guaxupé and Varginha, saw increases in the prices of type 6 hard drink coffee, others, such as Poços de Caldas, experienced declines. The peeled cherry variety also followed this trend of mixed variations, with prices fluctuating according to local conditions and the influence of international markets. This volatility remains a notable feature of the coffee market, requiring constant attention from producers and investors.

Source: Notícias Agrícolas