Tuesday (26) was another day of positive movements for coffee prices, which ended the day's activities with highs on the New York and London Stock Exchanges. Last Monday (26), Arabica prices had already reached 27-year highs for early maturities, while Robusta had its highest prices in 7 weeks. “Coffee prices are rising due to concerns about long-term damage to the coffee crop due to drought conditions in Brazil. Rainfall in Brazil has been consistently below average since April, damaging coffee trees during the all-important flowering stage and reducing the outlook for Brazil's 2025/26 Arabica coffee crop,” explains the international website Barchart. “Coffee prices also have support left over from last Thursday, when the USDA’s Foreign Agricultural Service (FAS) projected Brazil’s 2024/25 coffee production at 66.4 million tons, below the USDA’s previous forecast of 69.9 million. The USDA’s FAS also projects Brazil’s coffee stocks at 1.2 million bags at the end of the 2024/25 season in June, down -26% from last year,” the publication adds.

On the robusta side, in addition to the bullish reflection coming from arabica prices, the market receives support from reduced production for the variety.

“Vietnam’s agriculture department said on March 26 that Vietnam’s coffee production in the 2023/24 crop year fell by -20% to 1.472 million tons, the lowest crop in four years, due to drought. The USDA FAS projected on May 31 that Vietnam’s robusta coffee production in the new 2024/25 crop year will fall slightly to 27.9 million bags from 28 million bags in the 2023/24 season,” Barchart details.

Source: Notícias Agrícolas