Coffee opens higher as the market tracks the harvest and quality of the Brazilian crop.

Coffee prices opened higher on Wednesday (10) in international markets. The market is following the progress of the harvest in Brazil, the world's main producer and exporter, while agents remain attentive to crop conditions and the pace of new coffee sales.

In the early morning, the July/26 contract for Arabica coffee was trading at 246.00 cents/lb, up 160 points. The September/26 contract advanced 120 points, quoted at 242.10 cents/lb, while the December/26 contract registered a gain of 135 points, to 235.25 cents/lb.

In London, Robusta was also trading higher. The July/26 contract rose US$74, trading at US$3,367 per ton. The September/26 contract advanced US$77, to US$3,307 per ton, while the November/26 contract gained US$78, quoted at US$3,239 per ton.

In Brazil, the harvest is gaining momentum in the main producing regions after a slower start, influenced by frequent rains and irregular fruit ripening. According to researchers at Cepea, the drier weather recorded at the beginning of June has favored both the ripening of the beans and the progress of fieldwork.

At the same time, the first assessments of the crop quality are beginning to emerge. According to Cepea, producers are showing concern about the bean size of the coffee harvested so far, especially in important regions such as Southern Minas Gerais and Mogiana Paulista. However, the Research Center emphasizes that it is still too early for definitive conclusions, since only a small portion of the crop has been processed so far.

Another factor monitored by the market is commercialization. With the gradual arrival of new coffee, producers have been taking advantage of current price levels to close deals and bolster their cash flow, a trend that tends to keep sales active at the start of the season.

Thus, the market continues to balance the supply pressure brought about by the progress of the harvest with uncertainties about the final quality of the Brazilian crop, factors that remain crucial in price formation on international exchanges.

By: Priscila Alves I instagram: @priscilaalvestv

Source: Agricultural News