Coffee rises 2.29% in New York with concerns about the harvest in Brazil

Coffee futures contracts ended this Monday's session (15) on a high on the New York Stock Exchange. The Arabica contract due in September advanced 2.29%, closing at US$2.59 per pound.

Barchart highlighted that the market extended the gains recorded last week, with arabica reaching its highest level in the last two weeks and Robusta reaching its highest in around five weeks. The main supporting factor continues to be concern about the pace of the harvest in Brazil, the world's largest producer of the drink.

According to the meteorology company Vaisala, moderate to heavy rain is forecast in the main Brazilian coffee growing regions throughout this week. The scenario could make field work difficult and delay the progress of the harvest, reducing the supply available in the short term.

Another element of support for quotes is the reduction in stocks monitored by ICE. Arabica coffee stocks fell to their lowest volume in almost seven months, totaling 398,940 bags last Friday. Robusta stocks remain close to the lowest levels in two years, reinforcing the perception of more restricted supply in the international market.

Cocoa

The cocoa market ended the session on a sharp rise, with the contract expiring in September rising 2.69%, closing at US$3,972 per ton.

Barchart highlighted that prices reached their highest level in around a week and a half, driven mainly by the devaluation of the dollar. The fall of the US currency index to a one-week low encouraged covering short positions and favored the price recovery movement.

The weakness of the dollar tends to benefit commodities traded in US currency, making contracts more attractive to international buyers.

Sugar

Sugar futures contracts ended the session lower on the New York Stock Exchange. October delivery fell 0.28%, closing at 14.19 cents per pound.

According to Barchart, the market was pressured by the sharp drop in oil, which lost around 5% on the day. With lower fuel prices, ethanol tends to lose competitiveness, which could encourage plants around the world to allocate a greater portion of sugar cane to sugar production, increasing the global supply of the commodity.

During the session, prices reached their lowest levels in recent weeks, with sugar in New York renewing its low of around a month and a half, while the London market recorded its lowest level in approximately two and a half weeks.

On the other hand, prices found some support from concerns about the climate in India. Data released by the country's Meteorological Department showed that the amount of monsoon rainfall accumulated up to June 12 was 26% below the historical average.

As the monsoon season is essential for the development of Indian crops, the scenario keeps market players' attention on the production of the world's second largest sugar producer.

Cotton

The cotton futures market ended the session slightly higher on the New York Stock Exchange. The contract due in December advanced 0.51%, closing at 76.81 cents per pound.

Throughout the day, fiber futures contracts registered gains. The movement was accompanied by the sharp drop in oil, which fell US$4.41 after the announcement of an agreement between the United States and Iran, signed over the weekend and scheduled to be signed on Friday (19).

In the financial market, data from the CTFT (Commodity Futures Trading Commission) showed that investment funds reduced their net short positions in cotton by 10,198 contracts until last Tuesday, totaling 42,204 contracts. The movement indicates a decrease in the bearish bias on the part of investors.

Orange juice The future expiration date for orange juice for delivery in July ended with a devaluation of 5.27%, with the contract closing at US$1.54 per pound.

Coffee became almost 16% cheaper in one year and gave consumers a boost

Source: CNN