Coffee sees new lows this Monday and Arabica tests levels below US$ 3.40 in NY

Entrada das novas safras do BR pesa sobre os mercados

Despite significant increases in most commodities traded on international exchanges this Monday (02), Arabica coffee futures on the New York Stock Exchange are falling again and are now trading below US$ 3.40 per pound in the most traded positions. The declines, around 9:30 am (Brasília time), varied between 0.8% and 1% in the main contracts, taking July to 339.65 and December to 332.40 cents per pound. March/26 was already trading below US$ 3.30, being quoted at 327.80 cents/lb.

The market continues to be pressured by its supply fundamentals, with the arrival of new crops from Brazil. "With the harvest of the new crop in Brazil, the world's largest producer, advancing, funds and speculators are putting pressure on the prices of robusta and arabica," says Eduardo Carvalhaes, director of the Carvalhaes office.

According to the expert, the harvests of both varieties are progressing well and are producing important figures that are having an impact on prices. "The first figures for both harvests seem to confirm the predictions of agronomists and coffee growers: a larger harvest for conilon compared to 2024, and a smaller harvest for arabica than the current harvest. However, it is still too early to draw more reliable conclusions," says Carvalhaes.

Still, traders remain attentive to a market that has been seeking its balance between supply and demand, still trying to overcome the historically low stocks recorded in recent seasons.

In the financial sector, attention is also being doubled. The war between Russia and Ukraine is escalating again, relations between China and the United States are once again quite tense, while oil prices are up more than 4% and the dollar index is falling, trading below 99,000 points this Monday.

On the London Stock Exchange, Robusta futures were also trading in negative territory, losing between 60 and 77 dollars per ton among the most traded positions. Thus, July was worth US$ 4,438.00 per ton, while November was worth US$ 4,352.00.

By: Carla Mendes | Instagram @jornalistacarlamendes

Source: Agricultural News