Global: Arabica coffee futures hit new record amid supply uncertainty

Published Nov 25, 2024

Tridge summary

A report by Hedgepoint Global Markets highlights the rise in coffee futures prices, which is due to concerns over global supply. The report points out that arabica futures have reached a record high of 311.25 cents/lb. The main supply concerns are from Brazil, where the 25/26 harvest may see a decrease in production due to adverse weather conditions. Other large coffee producers like Indonesia and Vietnam are also facing challenges that could reduce their export capacity. The strong export rhythm of the 24/25 harvest in Brazil could lead to historically low stocks. The report anticipates a tight supply scenario, which is likely to continue influencing coffee prices due to persistent global demand.

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

Original content

A report from Hedgepoint Global Markets analyzes coffee futures prices, which have shown an upward trend due to growing uncertainty about global supply. This Monday (25), arabica futures reached 311.25 cents/lb in the morning, a new record for the contract. In Brazil, the main concern lies with the 25/26 harvest, which may have reduced production due to adverse weather conditions, such as drought and high temperatures. "Although our estimates on conilon production for the period, in relation to 24/25, project an increase of 12.2%, reaching 22.6 million bags, the arabica harvest could show a drop of 1.4%, totaling 42.6 million bags”, says Laleska Moda, Coffee analyst at Hedgepoint. “Initially, we estimated the total supply of coffee in the country at 65.2 million bags, an increase of 2.9% compared to the previous harvest, of 63.4 million bags, but future weather conditions could change our projections”, observes the analyst. The USDA also revised the 24/25 harvest estimate last ...

Source: NoticiasAgricolas