RIO DE JANEIRO, BRAZIL – The Arabica coffee future market closed Tuesday’s trading session down 4.22%, equivalent to over 800 points, in the main references in the New York Stock Exchange (ICE Future US). With the drop, contracts are once again traded below 200 cents per pound.
December/21 fell by 845 points, trading at 191.90 cents/lbp, March/22 fell by 840 points to 194.85 cents/lbp, May/22 fell by 840 points to 196 cents/lbp and July/22 dropped 835 points to 196.55 cents/lbp.
“The long sell-off in coffee futures contracts weighed on prices after weekend rains in Minas Gerais eased concerns over Brazil’s coffee crop,” noted the analysis on Barchart international website.
Rains are starting to reach Brazilian coffee plantations, albeit still very timidly and with little relief to the prolonged drought. According to analysts consulted, firm coffee prices are expected until the end of this month, mainly due to a tighter supply from the world’s largest coffee producer and exporter. However, high volatility is not ruled out.
In addition to Brazil, Colombia’s advancing Arabica production and exports have helped pressure the market. Production last month exceeded 1.2 million 60kg bags – 22% more than the 995,000 bags recorded in the same period in 2020.
Colombian exports also posted significant growth last month. According to FNC, in line with production, shipments grew 23% in September to almost 1.1 million 60kg bags of green coffee, compared to 887,000 bags exported in the same month of 2020.
In the London Stock Exchange, Conilon coffee also depreciated during the day. November/21 fell by US$37 a ton, worth US$2,111, January/22 fell by US$31 a ton, quoted at US$2,109, March/22 fell by US$24 a ton, worth US$2,064 and May/22 fell by US$24 a ton, worth US$2,042.
In Brazil, the domestic market on Tuesday closed down with devaluation in the country’s main trade centers.
Type 6 hard bean fell 3.84% in Guaxupé/MG, worth R$1,152 (US$210), Poços de Caldas/MG was down 0.83%, worth R$1,200, Araguarí/MG fell by 4.17%, quoted at R$1,150, Varginha/MG dropped 4.88%, worth R$1,170, Campos Gerais/MG dropped 3.84%, worth R$1.152 and Franca/SP fell 4.07%, worth R$1.180.
Dried cherry fell 3.55% in Guaxupé/MG, worth R$1,222, Poços de Caldas/MG was down 0.74%, worth R$1,340, Varginha/MG fell 3.97%, worth R$1,210.00 and Campos Gerais/MG dropped 3.66%, worth R$1,212.