Arabica Coffee Climbs to Two-Week High Amid Brazilian Crop Concerns

Arabica coffee prices reached a two-week high due to drought concerns in Brazil, impacting crop yields. Meanwhile, robusta prices fell as inventories increased and production forecasts showed potential growth. Coffee supply issues persist, influencing market dynamics significantly.

On Thursday, May arabica coffee (KCK25) saw a closing increase of +1.10 (+0.28%), while robusta coffee (RMK25) decreased by -30 (-0.548%). Arabica prices reached a two-week high, primarily driven by adverse weather conditions in Brazil, specifically insufficient rainfall threatening crop yields. According to Somar Meteorologia, the Minas Gerais region, a key growing area, received only 30.8 mm of rain during the recent week, marking 71% of the historical average.

In conclusion, the dynamics affecting coffee prices are influenced significantly by weather conditions in Brazil, leading to mixed movements in both arabica and robusta coffee prices. As supply concerns rise due to diminished yields and increased production forecasts elsewhere, the coffee market will continue to exhibit volatility. Monitoring Australia’s crop conditions and global export trends remains essential for stakeholders in the coffee industry.

Original Source: www.nasdaq.com