MILAN – Scanty rain in the coffee belt and a stronger real against the U.S. dollar pushed coffee futures markets higher in the first session of the week. Yesterday, Monday 17 March, prices rebounded both in New York and London after two consecutive trading sessions in negative. May Arabica coffee futures in NY rose 1.6 percent to close at 383.40 cents.
In London, Ice Robusta most traded contract for May delivery recovered 1.4 percent to settle at $5,474.
The weather trend in Brazil continues to hold sway. According to analyst Pine Agronegócios, quoted by Notícias Agrícolas, all major producing areas recorded cumulative rainfall for the month of March that was well below historical averages for the period.
February also saw below-average rainfall coupled with very high temperatures.
The drought could affect not only this year’s harvest but also next year’s.
Although the fundamentals for the 2026/27 crop have not yet been outlined, we can already say that we will enter next winter with the lowest rainfall accumulation in the historical series as far as the Arabica areas are concerned.
And with a water deficit, in a period that is already characterised by limited rainfall, writes Pine Agronegócios.
The broker Escritório Carvalhaes, for its part, notes in its usual weekly bulletin that the fundamentals are unchanged and that the price trend – both in New York and London – also reflects the current uncertainties in the world markets, given the profound changes in the political and economic policies adopted by the new American president in the first 50 days of his mandate.
