Arabica coffee maintains high prices with reduced inventories

According to a report by Hedgepoint Global Markets, arabica coffee futures prices remain volatile, mainly influenced by the drop in certified stocks in ICE (Intercontinental Exchange) warehouses. Currently, the stored volume amounts to approximately 417,000 bags, the lowest level in a year and a half and close to the levels recorded at the end of 2023. Since the beginning of August, certified stocks have been decreasing, with a reduction in volume from most origins, including Mexico, Honduras, Nicaragua, Peru, Uganda, and Brazil – the latter being the main supplier for ICE stocks in recent years. Between July 29 and November 7, the total number of bags fell by 353.1 thousand, equivalent to 43.8%. In the case of Brazilian coffee, the contraction was 148.3 thousand bags, a drop of 90.6%. “This reduction is a result of the lack of interest from coffee growers – especially Brazilians – in certified coffee, as they are well capitalized and the differentials for part of the year did not ...