After posting strong gains in Friday's session (15), coffee prices were experiencing profit-taking on international exchanges on Monday morning (18), falling more than 1% in New York and London.

The coffee market remains volatile, pressured by concerns about supply and weather.

According to a Rabobank report, since the beginning of August, coffee prices began to reverse the downward trend observed since March. By August 13, Arabica coffee had risen 4% and Conilon coffee 13% compared to July. "The appreciation reflects the situation of low stocks, lower-than-expected exports in some origins, and light to moderate frosts in some regions, especially in the Cerrado Mineiro region, which raise concerns about the production potential for the next harvest," the report concluded.

Reuters reports that traders said the market was supported in part by a decline in certified stocks on the exchange, which fell to a one-year low of around 720,000 bags, as roasters sought to secure alternative supplies following the imposition of a 50% tariff on US imports of Brazilian coffee.

According to Cepea, the Arabica harvest is nearing its end in Brazil, but with lower-than-expected yields. In Minas Gerais and parts of São Paulo state, there are reports of up to 12 bags being needed to complete a 60-kilogram bag of processed coffee, compared to an average of 7 to 8 bags.

At around 9:30 am (Brasília time), Arabica was down 465 points at 337.00 cents/lbp for the September 25 contract, down 545 points at 328.75 cents/lbp for the December 25 contract, and down 490 points at 318.05 cents/lbp for the March 26 contract.

Robusta was trading at a loss of US$76 at US$4.125/ton for the September 25 contract, down US$69 at US$3.998/ton for the November 25 contract, and down US$64 at US$3.879/ton for the January 26 contract.

Source: Notícias Agrícolas