Arabica coffee prices have been “piggybacking” on the appreciation of Robusta in London, according to an analysis by Haroldo Bonfá, director of Pharos Consultoria. Papers for May, the most traded, are now worth US$2.009 per pound, an increase of 1.59%.
In the last session, the Robusta rose more than 5% on the London Stock Exchange.
“In the midst of a supply crisis in Vietnam, there are many reports that producers are not fulfilling contracts, trying to take advantage of high prices in the domestic market. This greatly disrupts the flow of negotiations”, says Bonfá.
For him, prices also gained support after technical issues, and also in the face of concerns about the weather during the winter in Brazil.
“A stronger La Niña over the country could increase the risk of frost. This whole combination of factors triggered orders to purchase coffee on the stock exchange”, he adds.
Also on the rise this Wednesday morning (3/4) are demerara sugar papers, quoted at 22.32 cents per pound. And cotton ones operate stable, at 91.03 cents per pound.
Cocoa, in turn, is undergoing a correction after recent highs and after surpassing the US$10,000 per ton mark.
Contracts for May now fall 0.45%, to US$ 9,425 a ton.
