Arabica coffee prices have been rising for the 3rd day in a row, hitting the upper limit of tte short-term consolidation which started in December. As one can see, the behavior of the Brazilian real does not support coffee prices. Nevertheless, it is worth noting that we are observing a global increase of commodity prices, which is also related to the expectation of a weaker dollar and rising inflation.
From the beginning of the year, coffee prices have remained at a high level, which is related to the expectation of smaller harvests in Brazil and the reduction of exports from the key production countries of Central America, famous for high-quality coffee - Honduras and Guatemala. Nevertheless, it's important to remember that in 2020 we saw huge production in Brazil, despite concerns over the coronavirus and a contraction in demand. The tremendous increase in production from Brazil last year led to a rise in coffee inventories on the stock markets (on the other hand, coffee inventories from Central America fell sharply).


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