At 10:15 am (Brasilia time) this Tuesday (2), the July contract for Arabica coffee traded on Brazilian Stock Exchange (B3) It was operating in stability, quoted at US$ 327.00 per 60 kg bag. The September contract, however, fell 0.52% to US$ 308.60/bag. Meanwhile, New York Mercantile Exchange (Nymex)The equivalent assets showed an upward bias (+0.06% and +0.08%), quoted at US$ 260.75/sc and US$ 254.40/sc, respectively. This morning, market participants are reacting to new crop projection data for 2026/27 from the United States Department of Agriculture (USDA) for Brazil. According to the document, a recovery in Brazilian coffee supply is expected in 2026/27, with production estimated at 71.90 million bags, a 14.1% increase compared to the previous crop, driven mainly by Arabica. The greater domestic availability should increase total exports to 49.07 million bags, while domestic consumption remains relatively stable and ending stocks rise to 4.43 million bags. Regarding the weather, investors are assessing the effects caused by the hailstorms that hit producing areas in southern Minas Gerais at the beginning of the harvest, causing fruit to fall and damaging batches being dried, especially in Boa Esperança, Campos Gerais, and Campo do Meio, with the risk of impacting the volume and quality of regional production.
This text was translated by machine from Brazilian Portuguese.