At 10:11 am (Brasilia time) this Wednesday (20), the July contract for Arabica coffee traded on Brazilian Stock Exchange (B3) The futures contract was trading slightly lower, quoted at US$335.50 per 60 kg bag. The September contract, however, showed a slight increase of 0.16%, at US$314.50/bag. New York Mercantile Exchange (Nymex)The July contract was down 0.57%, at US$268.60/sc, while the September contract depreciated 0.351%, quoted at US$260.80/sc. This morning, the market is reacting to new coffee production projections from attachés. United States Department of Agriculture (USDA) for different countries. USDA reports point to distinct scenarios for 2026/27: Indonesia is expected to register an 8% drop in production, to 11.38 million bags, pressured by excessive rainfall in Robusta areas, while Tanzania and Kenya are expected to increase supply to 1.60 million and 950,000 bags, increases of 10.3% and 11.8%, respectively. In terms of ending stocks, the reading also points to distinct scenarios: Indonesia is expected to decline 11%, to 671,000 bags, while Tanzania is expected to increase from 51,000 to 157,000 bags and Kenya from 97,000 to 120,000 bags, indicating greater replenishment in East Africa.
This text was translated by machine from Brazilian Portuguese.