Market Dynamics at ICE Futures US and London Exchange
The surge in Arabica prices at the New York Stock Exchange (ICE Futures US) has influenced the Brazilian coffee market positively, while London’s decline in Robusta has exerted downward pressure on Conilon. This Thursday witnessed higher prices for Arabica and lower prices for Conilon in the Brazilian coffee market.
Price Trends for Arabica and Conilon
Arabica trading showed increased activity despite lower trading volume compared to the previous day. Conversely, Conilon sales slowed down on Thursday due to price declines. Notable price points include:
- Arabica Coffee: Good quality Arabica coffee, with a 15% harvest rate, was priced at 1,125.00/1,130.00 R$ per bag, compared to the previous range of 1,110.00/1,115.00 R$.
- Cerrado Region in Minas Gerais: Arabica coffee with 15% cleaning content was priced at 1,130.00/1,135.00 R$ per bag, compared to the previous range of 1,115.00/1,120.00 R$.
- Zona da Mata Region in Minas Gerais: Arabica coffee, known as “rio” type 7, with a 20% harvest, was priced at 990.00/995.00 R$ per bag, compared to the previous range of 970.00/975.00 R$.
- Vitória (ES) for Conilon: Conilon type 7 was priced at 1,035.00/1,040.00 R$ per bag (previously 1,055.00/1,060.00 R$) and 7/8 at 1,030.00/1,035.00 R$ per bag (previously 1,050.00/1,055.00 R$).
New York Stock Exchange Performance
At the New York Stock Exchange, operations concluded with sharp price increases for Arabica coffee. Prices surged again, with the May contract reaching a maximum of 207.95 cents per pound, the highest level since September 2022. Concerns about the 2024 Brazilian harvest, set to begin in April alongside ongoing research on Arabica plants, have led to consolidation above $2, with prices expected to commence later.
Weather Concerns and Market Outlook
Signs of excessive rainfall in the country’s production regions have once again supported prices in New York. There are fears of production losses and quality impacts, particularly in Minas Gerais, Brazil’s largest production state. The day saw May 2024 delivery contracts closing at 206.75 cents per pound, up 1.5%, and July 2024 positions closing at 205.80 cents, also up 1.5%.
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