(MENAFN- The Rio Times) Coffee futures in New York saw a decrease on Monday. March/24 Arabica futures dropped 70 points to 195.60 cents per pound.
The May/24 and July/24 contracts also fell, reaching 191.15 and 189.85 cents per pound, respectively.
The drop is linked to Brazil's increased coffe exports, which Cecafé reported rose 45% in January to 3.7 million bags.
As the top arabica bean producer, Brazil's weather initially boosted prices. Yet, the prospect of more coffee led to lower prices.
Robusta coffee stocks hit a new low, emphasizing the dwindling supply. Meanwhile, Arabica stocks fell to a 24-year low before partially recovering to a three-month peak last Friday.
Global coffee exports in December jumped 13.6%, with a 6.8% rise from October to December, showing the market's reaction to supply changes.
This context underscores the global coffee economy's volatility and the impact of Brazilian exports on international prices.
Brazil's role as a global coffee powerhouse significantly influences market trends.
Historically, Brazil 's coffee production has swayed international prices due to its substantial share of global supply.
The recent surge in Brazilian exports reflects not only favorable weather conditions but also improvements in agricultural practices and export infrastructure.
This increased supply, however, has led to a reduction in global coffee prices, illustrating the delicate balance between supply and demand in commodity markets.
The contrast between the robusta and arabica varieties further highlights market dynamics.
While arabica beans, known for their smoother flavor, dominate Brazilian exports, the robusta variant, favored for its bitterness and in instant coffees, shows differing supply patterns.
The drop in robusta stocks points to a tightening supply, potentially affecting prices differently than in arabica.
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