Coffee prices, the highest in 27 years - Drought period and logistical obstacles, among the main factors
Coffee futures prices hit new highs, with the Arabica variety at levels not seen since the turn of the last century.
The December contract, which now draws minimal volumes, rose to an all-time high of 308.35 cents. This is the highest price for the month near expiration since May 29, 1997, when it peaked at 314.80 cents, only to fall sharply below zero in the following days.
In that period, growth was driven by the imbalance caused by frost and drought in the middle of the decade and the announcement of a sharp decline in production in Colombia.
This year, Brazil is again facing a severe drought, which has already at least partially affected the production potential of the Arabica variant for the next harvest.
Rains in October led to an "excellent flowering" of the trees, according to experts, but "there are now fears that the flowers will not be fixed on the branches, putting the crop at risk." Adding to this pressure is the possibility that a strong pace of Arabica exports this year could result in low stocks at the end of the current season.
According to analysts, the potential for next year's production "has been significantly affected by the long period of drought that affected Arabica coffee crops until September."
Meanwhile, logistical obstacles continue to penalize exports, which have reached record levels this year. According to data provided by Cecafé, about 1.7 million bags of green coffee (equivalent to 5,203 containers) have remained stranded in Brazilian ports due to infrastructural deficiencies.
As for the Robusta variety, prices approached the highs reached in September. The January Ice Robusta contract was up 2.5% (+$125).
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