Still under pressure from the arrival of Brazil’s 2020 crop, the July 2020 contract of arabica coffee lost the level of 100 cents, further falling on ICE Futures in New York. Arabica went against other commodities, which rebounded in May, following the surge in crude oil and supported by the reopening of the economies of Europe and the United States. But coffee kept dropping. The fact is that international prices remain too flattened, pressured by the negative effect of the COVID-19 pandemic, which in the case of coffee, is aggravated by the arrival of a record crop in Brazil.
As a result, coffee prices fell below 100 cents on the U.S. exchange. This low price may even stimulate some interest from the global industry, which eases the pressure and helps to either build an apparent bottom or at least limit new losses. But the fact is that Brazilian supply must continue working against more significant improvement in prices, limiting upward moves. In this sense, the trend is that the international market must remain under pressure in the short term, given weak fundamentals (supply greater than demand).