Global coffee market: Volatility persists with highs in New York and fluctuations in London

Published 2024년 12월 19일

Tridge summary

The global coffee market is experiencing price fluctuations due to uncertainties about the climate's impact on the 2025 Brazilian harvest and the recovery of harvests in Vietnam and Indonesia. The USDA projects a global production increase to 174.9 million bags for 2024/25, despite a drop in final stocks. Brazil's harvest is estimated to see a modest increase, but drought and high temperatures are expected to reduce Robusta production. Vietnamese production is also expected to increase, but not as much as in the previous cycle. The market's volatility reflects adjustments in supply and demand balances, with investors considering weather conditions, revised estimates, and the behavior of major trading exchanges.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The global coffee market remained volatile this Thursday (19), with the price of Arabica rising on the New York Stock Exchange (NY) and mixed variations in Robusta on the London Stock Exchange. Uncertainties regarding the climate impacts on the 2025 Brazilian harvest continue to influence prices. The World Coffee Production, Markets and Trade Report, released this Wednesday (18) by the United States Department of Agriculture (USDA), projects global production of 174.9 million bags for 2024/25, an increase of 6.9 million compared to the previous cycle. This growth is mainly driven by the recovery of harvests in Vietnam and Indonesia. Despite this, final stocks are expected to fall by 1.5 million bags, totaling 20.9 million. In Brazil, the world's largest producing region, the combined Arabica and Robusta harvest is estimated at 66.4 million bags for 2024/25, a modest increase of 100,000 bags compared to the previous cycle. Arabica production is expected to reach 45.4 million bags, ...

Source: Portal Do Agronegocio