Source: Agricultural News
Tuesday (06) saw gains for future coffee prices on the New York Stock Exchange. May / 21 maturity was quoted at US $ 126 c / lb with an increase of 475 points, July / 21 was valued at US $ 128 c / lb with an increase of 465 points, September / 21 was traded at US $ 130 c / lb with a gain of 460 points and December / 21 had a value of US $ 132 c / lb with an appreciation of 450 points.
According to information from the international website Barchart, coffee prices rose on Tuesday due to concerns about future supplies. Citigroup said on Tuesday that Arabica coffee would have a "sizeable" deficit of -7.5 million bags for the 2021/22 crop cycle.
Coffee prices are also sustained due to drought conditions in Brazil. Somar Meteorologia reported on Monday that last week's rains in Minas Gerais, Brazil's largest arabica-producing region, measured 8.2 mm, or just 32% of the historical average.
The publication also highlights that the strength of the Brazilian real supports coffee prices. The real rose 1.22% on Tuesday, to a one and a half week high against the dollar, which discourages export sales by Brazilian coffee producers.
Another upward factor was Cooxupe's forecast for production in 2021 of 7.49 million bags, a sharp drop of -32% compared to 10.99 bags in 2020. The lower production is due to the dry and hot climate and the lower half of the biennial cycle.
On the other hand, coffee prices continue to suffer downward pressure due to concerns that a resurgence of Covid infections could lead to stricter restrictions that will keep restaurants and coffee shops closed for longer.
In Brazil, Tuesday was, predominantly, of appreciation for the prices of the bag of coffee in the national physical market.
The peeled cherry type, for example, rose 3.21% in Campos Gerais / MG, with a price of R $ 805.00, 1.94% in Guaxupé / MG with a value of R $ 790.00 and 1.36% in Poços de Caldas / MG priced at R $ 745.00.
The type 6 hard drink spout was up 3.47% in Campos Gerais / MG with a price of R $ 745.00, 2.34% in Varginha / MG with a value of R $ 745.00, 2.05% in Guaxupé / MG being quoted at R $ 747.00 and 1.56% in Maringá / PR with a level of R $ 650.00. On the other hand, the Rio Grande do Sul average decreased 0.70%, being quoted at R $ 705.00.
The type 6/7 hard drink spout registered increases of 3.54% in Campos Gerais / MG with a price of R $ 732.00, of 2.10% in Guaxupé / MG and Varginha / MG being quoted at R $ 730, 00 in both regions and 1.46% in Poços de Caldas / MG and Espírito Santo do Pinhal / SP with a quotation of R% 695.00.