Arabica Coffee Prices Decline Amid Brazilian Weather Concerns

Arabica coffee prices decreased by 1.3% to $3.82 per pound while remaining on track for a weekly gain of 2.4%. Concerns about Brazil’s weather affect market perceptions. Cocoa prices increased by 1.8% but face a weekly loss of 8.7%. Sugar futures rose slightly, with raw sugar up by 0.8%.

Arabica coffee prices experienced a decrease on Friday, registering a loss of 1.3% to $3.82 per pound as of 1212 GMT. Nevertheless, the market is still projected to achieve a weekly gain of 2.4%. Investors are keenly observing the developing crop conditions in Brazil, the leading producer of Arabica coffee.

Concerns regarding dry weather in Brazil persist, with predictions of rain appearing uncertain in effectively improving crop prospects. Maxar weather service indicated, “Unfavorable soil moisture and mostly dry conditions will not support cherry growth,” and forecasted that Brazil would maintain mostly dry conditions for the next five days.

Global coffee traders and roasters have significantly reduced their purchases to minimal levels due to the industry’s struggle following a sharp price surge. Suppliers have not yet managed to persuade retail stores to accept the increased prices. Additionally, Robusta coffee prices fell by 0.2%, reaching $5,417 per metric ton.

In the cocoa market, New York cocoa prices rose by 1.8% to $8,334 per ton, yet are still expected to experience a weekly loss of 8.7%. Market dynamics have shifted as an improved production outlook for the 2024/25 season emerges, with the International Cocoa Organization anticipating a global surplus of 142,000 tons. BMI noted, “It is important to note that stock levels remain tight, suggesting that prices may stay elevated, even with an improved outlook.”

London cocoa prices increased by 0.8% to 6,496 pounds per ton, while raw sugar futures saw a rise of 0.8% to 18.28 cents per pound. White sugar prices also experienced an uptick, growing by 0.5% to $519.50 per ton.

In summary, Arabica coffee prices are easing amid ongoing concerns regarding Brazil’s dry weather, although a weekly gain remains on the horizon. Concurrently, the cocoa market is reacting to an anticipated global surplus, despite elevated stock levels. Meanwhile, sugar prices reflect a slight increase, indicating varied trends across these agricultural commodities.

Original Source: www.tradingview.com