NY Stock Exchange: With rains in Brazil and reduction in Colombian supply, coffee advances more than 2%

RIO DE JANEIRO, BRAZIL – The week began with a significant appreciation for the main contracts for the future market of Arabica coffee on the New York Stock Exchange (ICE Future US). The contracts advanced 2.16%, equivalent to more than 400 points abroad, extending last week’s gains.

May 2022 had a high of 495 points, worth 236.60 cents/lbp, July 2022 appreciated 500 points, quoted at 236.55 cents/lbp, September 2022 advanced 495 points, quoted at 236.60 cents/lbp, and December 2022 had a high of 520 points, traded at 234.45 cents/lbp.

According to an analysis by the international website Barchart, coffee was once again supported by weather conditions in Brazil. “Excessive drought in Brazil prompted some buying of Arabica coffee bottoms on Monday after Somar Meteorology reported that rainfall in the Minas Gerais area, which accounts for about 30% of Brazil’s Arabica crop, was 15.5 mm last week, or just 77% of the historical average,” the analysis highlights.

In Brazil, analysts maintain the scenario of firm prices until at least the beginning of the harvest in the main production areas. The rains at the beginning of the year are beneficial; they bring relief to the producer but do not change the frustrating break scenario for 2022. For 2023, however, the scenario is more positive. In addition to Brazil, other producing countries are facing production problems, such as Colombia, the second-largest Arabica coffee producer in the world.

The conilon coffee type closed on April 11 with a 1% high on the London Stock Exchange. May 2022 had a high of US$17 per ton, worth US$2108, July 2022 increased US$21 per ton, negotiated at US$2117, September 2022 increased US$21 per ton, quoted at US$2115, and November 2022 increased US$21 per ton, negotiated at US$2111.

In Brazil, the physical market followed and had a day of appreciation in the country’s main markets.

The type 6 hard drink bica corrida was up 1.55% in Guaxupé (Minas Gerais), trading at R$1,310 (US$282), Poços de Caldas (Minas Gerais) was up 1.57%, quoted at R$1,290, Varginha (Minas Gerais) recorded a high of 0.76%, trading at R$1,320, Campos Gerais (Minas Gerais) advanced 1.54%, worth R$1,315, and Franca (São Paulo) was up 3.94%, trading at R$1,320.

The type cherry peeled was up 1.47% in Guaxupé (Minas Gerais), trading for R$1,380, Poços de Caldas (Minas Gerais) was up 2.19%, worth R$1,400, Varginha (Minas Gerais) recorded a high of 0.74%, quoted at R$1,370, and Campos Gerais (Minas Gerais) was up 1.48%, worth R$1,375.