Brazil backup reserves are reduced to 500 thousand bags, though they are usually about 8 million. Therefore, the coffee market in the world is rising to complete the season with a deficiency for the fourth year.
World Arabica prices exceed $ 3.60 per pounds, updating the maximum history. The reason is that reserves in Brazil, which are the largest manufacturer of various coffee in the world, and is afraid to be associated with the new harvest. Reuters reported it.
According to entrepreneurs, 70-80% of Arabica’s current harvesting in Brazil has been sold, and new transactions are slowly ending. Brazil produces about half the global volume of Arabica -a high -quality variety used in grain mixtures. Although weather conditions in the country improved after last year’s drought, it is expected that a new harvest will be 4.4% less than the previous one.
The trade company HedgePoint Global Markets records that coffee reserves in the world will remain limited. They sell crops that are slowly being used both in Vietnam, and Central America and Colombia, and Brazil farmers are not in a hurry to enter the market.
Arabica futures in the ice exchange reached $ 3.6945 per Libra, 15% above the beginning of the year. Ultimately, the price closed at $ 3.6655 (+2.5%).
Robusta, a cheaper variety of coffee used to produce soluble coffee, rises in prices of 0.9% to $ 5609 per ton.
It is expected that the export of coffee from India-Robusta’s fifth largest manufacturer-in 2025 will be reduced by more than 10% due to a reduction in yield and minor residue. Meanwhile, farmers in Vietnam and Brazil are preventing sales from expecting additional prices.
According to Sucden Broker, Brazil’s backup reserves were reduced to 500 thousand. Bags, though they usually make up about 8 million. This means that any risks during the weather can be more shaken in the market. The company predicts that the coffee market in the world will end in the season with a shortage for four years.
Earlier it was reported that the world’s prices for Cocoa were updating a historical record. Cocoa futures in New York have achieved a new history record. The most active contract grew by 5%, reaching $ 1,1578 per metric tons at the beginning of the trade on Friday, April 19.
In December 2024, the coffee futures of the Arabica varieties in the New York Exchange reached $ 3.434 per pounds, highest in 1972.
Source: korrespondent
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