The international coffee market on US and UK presents inversion and signals concerns about the immediate supply

The international coffee market recorded a positive week on the futures exchanges in New York (ICE Futures US) for arabica and London for Robusta, the latter reaching historic high levels, the highest in 16 years. A notable feature is the "inverted" situation on both exchanges, with closer contracts presenting higher prices than more distant ones, reflecting an imminent concern about supply. The March contract in New York surpassed 190 cents per pound, while the other contracts remain below this technical and psychological mark, highlighting the reversal in the normal behavior of the futures market. SAFRAS & Market consultant, Gil Barabach, highlights that the coffee market remains busy and highly volatile. Financial vulnerability and concerns about Robusta coffee supply influence price movements. Arabica coffee is supported by the rise in oil prices and the appreciation of Robusta in London, but fragility persists in the face of a global industry that is positioning itself ...