Coffee physical market is impacted by ICE and dollar’s lows and retreats

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Slowdown on ICE US and weaker dollar end up weighing negatively against domestic coffee prices. The good progress of Brazil’s 2021 crop favors this realignment. Thus, prices in the internal physical market move away from the recent highs, intensifying the corrective movement.

The decline in prices was not enough to change the sellers’ behavior. The fact is that, even downward, the market remains in a region that is very favorable to sellers, which also guarantees excellent profitability. Climatic risks and doubts about production fuel bullish bets and favor the strategy of prolonging sales, particularly at this time of transition between seasons. In this case, without a more significant decline in prices, growers must continue managing sales and staggering positions.