Weak coffee performance in May

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The gains in early June helped offset the losses accumulated by arabica in New York last May. Arabica followed the weak performance of other commodities and went against the rise of the dollar. Thus, the second position of arabica on US ICE fell 5.4% in May. Even with significant losses, it performed better than grain, with the exception of wheat, and outperformed oil. It was practically in line with the CRB commodity index.

The losses in May ended up harming the accumulated performance in 2023, which is still positive. In New York, arabica accumulates a high of 5.2% in 2023, second only to sugar, which soared and accumulated gains of over 32% in the first 5 months of the year. However, even with the good performance in these first months of the year, coffee was unable to reverse the accumulated YoY losses. The beverage accumulated a decline of almost 21%. Cotton, with 34%, and corn, with 33%, are the negative highlights in the comparison of the last 12 months. Generally speaking, commodities were influenced by the decline in oil prices, which between May 2022 and May 2023 accumulated a decline of close to 35%.